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ECON 4.1

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

Demand is the desire, _________, and willingness to buy a product or service.

a)

ability

b)

incentive

c)

marginal utility

d)

quantity

2.

Prices act as a motivating influence, or ____________, that causes an individual to take action.

a)

market disruptor

b)

incentive

c)

marginal utility

d)

demand

3.

The Law of Demand states that the demand of a product has a(n) ________ relationship with its price.

a)

inverse

b)

positive

c)

diminishing utility

d)

neutral

4.

The market demand curve that shows the ______________ by everyone who is interested in purchasing a product at all possible prices.

a)

quantity demanded

b)

diminishing marginal utility

c)

marginal utility

d)

demand

5.

As people use more of product and lose satisfaction doing so, they encounter ____________.

a)

diminishing marginal utility

b)

marginal utility

c)

inverse quantity demanded

d)

the law of demand

6.

A demand schedule is best described as ____________.

a)

a graph

b)

a probability

c)

data

d)

a timeline

7.

When the price of something increases, the quantity demanded ________________.

a)

increases

b)

decreases

c)

remains unchanged

d)

reverses

8.

Consider the term marginal utility. Which word is the best synonym(same meaning) for "marginal".

a)

useful

b)

satisfactory

c)

borderline

d)

additional

9.

Why is the demanded curve downward sloping?

a)

because quantity demanded increases as price decreases

b)

because of natural elasticity of the market

c)

because it shows how increasing incentives changes demand

d)

because it reflects the desire, ability, and willingness of consumers

10.

Why is the Law of Demand called a "law"?

a)

because it is legally required

b)

because there are exception to it

c)

because it has been demonstrated repeatedly

d)

because its an economic term