Utility and Demand Review BJU Ch 3

What term do economists use to describe the willingness and the act of buying?

• Utils

• Demand

• Price

• Supply

What usually happens to the demand curves for normal goods during depressions?

• They shift to the right

• They shift to the right and then to the left

• They remain unchanged

• They shift to the left

What does the rightward shift of a demand curve indicate?

• An increase in demand

• A decrease in demand

• An increase in the quantity demanded

• A change in price

What does the leftward shift of a demand curve indicate?

• An increase in demand

• A decrease in demand

• An increase in the quantity demanded

• A change in price

Who wrote The Theory of Political Economy?

• Carl Menger

• Adam Smith

• William Stanley Jevons

• Karl Marx

Which of these happens when a business firm changes the price of its product?

• Change in demand

• Change in quantity supplied

• Change in supply

• Change in quantity demanded

When incomes are rising, consumers prefer to buy _____ goods.

• normal

• substitute

• inferior

• complementary

When incomes are dropping, consumers prefer to buy _____ goods.

• normal

• substitute

• inferior

• complementary

A good that can replace another good is called a _____ good.

• normal

• substitute

• inferior

• complementary

A good that is often bought with another good is called a _____ good.

• normal

• substitute

• inferior

• complementary