WorksheetsEconomics: Chapter 4 Review- Demand
Total questions: 29
Worksheet time: 15mins
Name
Class
Date
1.
Generally speaking, the lower the price, the greater the quantity demanded.
a)
True
b)
False
2.
Consumer wants are the same as consumer demand.
a)
True
b)
False
3.
The demand curve slopes upward, indicating that price and quantity are positively correlated.
a)
True
b)
False
4.
Demand is elastic if it is greater than 1.0.
a)
True
b)
False
5.
An individual point on a demand curve shows the quantity demanded at a particular price.
a)
True
b)
False
6.
When two goods are complements, a decrease in the price of one shifts the demand for the other leftward.
a)
True
b)
False
7.
Opportunity cost of time is constant among all consumers.
a)
True
b)
False
8.
Real income refers to
a)
how much money you actually earn.
b)
your income minus your taxes.
c)
how much your income can buy.
d)
your income minus taxes and benefits.
9.
Which situation shows the law of diminishing marginal utility at work?
a)
you are willing to pay more for every succeeding slice of pizza you purchase.
b)
you are willing to pay the same price for every succeeding lsice of pizza you purchase.
c)
You will only purchase succeeding slices of pizza if they cost less.
d)
Each slice of pizza you buy gets smaller.
10.
Which of the following parts of a consumer budget would be most price elastic?
a)
housing
b)
cable
c)
telephone
d)
automobile
11.
As money income increases, what happens to the demand for inferior goods?
a)
it increases
b)
it stays the same
c)
it decreases
d)
it is eliminated
12.
One of the reasons consumers choose substitutes is that
a)
no one can tell the difference.
b)
they are relatively cheaper.
c)
they are made in Japan.
d)
they are the same price and there are more of them.
13.
If suddenly, a large population increase occurred, what impact would it have on the housing market?
a)
prices would remain constant.
b)
There would be a surplus of homes on the market.
c)
It would shift the demand curve to the left.
d)
It would shift the demand curve to the right.
14.
The downward slope of a demand curve reflects the fact that, other things constant, price and quantity demanded are
a)
negatively related
b)
positively related
c)
elastic
d)
inelastic
15.
Which item would provide you with the least marginal utility?
a)
a second copy of the daily newspaper.
b)
a second drink of water when you're thirsty.
c)
a second pair of sneakers.
d)
a second car.
16.
The market demand curve shows
a)
the demand of an individual consumer.
b)
the number of markets in a specified area.
c)
the total number of markets.
d)
the total quantity demanded per period by all consumers at various prices.
17.
Elasticity, in economic terms, is another word for
a)
adaptability
b)
adjustment
c)
responsiveness
d)
reconciliation
18.
The demand for products or services for which there are no substitutes tends to be
a)
somewhat elastic
b)
unit elastic
c)
quite inelastic
d)
perfectly elastic
19.
The demand for products or services for which there are no substitutes tends to be
a)
somewhat elastic
b)
unit elastic
c)
quite inelastic
d)
perfectly elastic
20.
Products that can be used in place of each other are called ____.
a)
substitutes
b)
complements
c)
tastes
d)
inferior goods
21.
The satisfaction you derive from an additional unit of a product is called your
a)
marginal utility
b)
tastes
c)
total revenue
d)
demand
22.
The demand for a(n) ___ increases as money income increases- that is, the demand curve shifts rightward when consumer income increases.
a)
normal good
b)
inferior good
c)
superior good
d)
declining good
23.
The demand for products or services for which there are not substitutes tends to be
a)
somewhat elastic
b)
unit elastic
c)
quite inelastic
d)
perfectly elastic
24.
_____ indicates how much of a product consumers are both willing and able to buy at each price during a given period, other things constant.
a)
Demand
b)
total revenue
c)
marginal utility
d)
substitutes
25.
A change in price, other things constant, causes a ______ a demand curve.
a)
movement along
b)
shift of
c)
substitutes of
d)
none of these
26.
Elasticity of demand measures how responsive quantity demanded is to a change in
a)
price
b)
tastes
c)
substitutes
d)
inferior goods
27.
____ is price multiplied by the quantity demanded at the price.
a)
Total revenue
b)
marginal utility
c)
demand
d)
law of demand
28.
______ are your likes and dislikes as a consumer.
a)
Tastes
b)
Demand
c)
Substitutes
d)
Inferior goods
29.
Knowledge of elasticity is especially valuable to producers, because it indicates how a price change affects total revenue.
a)
True
b)
False
100 %
