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Worksheets

CHAPTER 5 & 8

Total questions: 25

Worksheet time: 15mins

Name
Class
Date
1.

this factor of production is paid in the form of rent or lease.

a)

land

b)

labor

c)

capital

d)

entrepreneur

2.

this is marketing of goods and services to different economic outlets for allocations to individual consumers.

a)

production

b)

distribution

c)

exchange

d)

consumption

3.

Definition of Marginal Utility

a)

the satisfaction from consumption

b)

to total satisfaction from consuming a product

c)

the extra satisfaction from the last unit consumed

d)

the extra consumption from last unit consumed

4.

The total utility definition states:

a)

The usefulness, benefit or satisfaction a consumer gains from consuming a product.

b)

The satisfaction gained from consuming a quantity of an economic good, measured in utils.

c)

The added consumer satisfaction from consuming a quantity of a good.

d)

The consumer's satisfaction from consuming a quantity of a good.

5.

Total utility is the benefit received from consuming an extra unit of a good.

a)

TRUE

b)

FALSE

6.

Identify the correct factor of production.

Skilled people working in a lawyers firm will be seen as?

a)

Natural resources

b)

Labour

c)

Capital

d)

Entrepreneurship

7.

The theory of negotiated wages is based on the

a)

idea that wages are influenced by a labor union negotiating with management for better pay and benefits

b)

the equilibrium wage created by supply of labor and demand of labor

c)

concept the more skills and talents you have the higher your pay should be

d)

principle of physical capital and resource accumulation

8.

Training and experiences is considered

a)

physical capital

b)

human capital

c)

labor

d)

necessary to obtain an unskilled job

9.

What is the price for labor

a)

value

b)

labor productivity

c)

wages

d)

human capital

10.

The demand for a product or resource based on its contribution to the final product.

a)

derived demand

b)

equilibrium demand

c)

excessive demand

d)

shortage of demand

11.

· In the United States, who determines what goods and services will be produced?

a)

Producers and the government

b)

Government

c)

Consumers

d)

Producers, consumers, and government

12.

Utility is the power of ....

a)

Buying goods

b)

Satisfying human wants

c)

Verifying goods

d)

Consuming goods

13.

Units of utility is ....

a)

Rs

b)

Kg

c)

Quintals

d)

Utils

14.

Marginal utility is the utility obtained by .....

a)

consumption of each unit

b)

consumption of two units

c)

Total consumption

d)

Consumption of first unit

15.

An indifference curve is combination of the points showing .....

a)

Different satisfaction

b)

More satisfaction

c)

Less satisfaction

d)

Equal satisfaction

16.

Total utility is the ......

a)

Difference of each marginal utility

b)

Sum of each marginal utility

c)

Multiplication of each marginal utility

d)

Division of each marginal utility

17.

A budget line is the combination of ....

a)

Goods

b)

Satisfaction

c)

Different level of expenditure

d)

Different level of satisfaction

18.

Consumer's equilibrium is that state of consumer where he maximizes .....

a)

Expenditure

b)

Consumption

c)

Profit

d)

Satisfaction or utility

19.

Consumer's equilibrium is maintained at the point where ....

a)

Budget line cuts indifference curve

b)

Budget line is tangent to indifference curve

c)

Budget line is convex to origin

d)

Budget line is parallel to indifference curve

20.

The point of consumer's equilibrium informs about ....

a)

1. The volume of money spent by consumer

b)

2. Quantity purchased of each commodity

c)

Answer 1 and 2 both are true

d)

Answer 1 and 2 both are false

21.

Which part of the buyer decision is most closely aligned with the Maslow's hierarchy?

a)

Purchase decision

b)

Evaluation of alternatives

c)

Need recognition

d)

Post-purchase behavior

22.

The only thing marketers need to know is what consumers will buy and at what price.

a)

True

b)

False

23.

The Consumer Analysis Framework is a good tool to determine the demand that a product has in the market.

a)

True

b)

False

24.

Affect is that type of reaction that is characterized by strong emotions.

a)

True

b)

False

25.

Consumer environment are the elements that influence consumer purchases , use , consumption of a product or service.

a)

True

b)

False