WorksheetsEcon-Ch. 4 Test Review-(Wayground)
Total questions: 62
Worksheet time: 31mins
Name
Class
Date
1.
Is this product elastic or inelastic? Tesla Car
a)
a. elastic
b)
b. inelastic
2.
Is this a big change or small change:
Gum was $1 now it's $2...
a)
big change
b)
small change
3.
Is this a big change or small change:
Econ book was $100 now it's $101...
a)
big change
b)
small change
4.
Who would respond more to a price change in cigarettes?
a)
kids
b)
adults
5.
Which is an example of an inferior good?
a)
a. fast food
b)
b. blue jeans
c)
c. casual shirt
d)
d. used CD
6.
Which economic concept is defined as the measure of how responsive consumers are to price change?
a)
a. elasticity of demand
b)
b. consumer expectation
c)
c. consumer taste
d)
d. decreasing marginal utility
7.
Answer question #2...
a)
a. prices up, quantity demand up
b)
b. prices up, quantity demand down
8.
Answer question #2...
a)
a. some consumers have a greater demand than Cheryl
b)
b. some producers can produce more DVD's at certain prices
c)
c. some consumers have less of a demand than Cheryl
d)
d. some producers can produce better DVD's that more people will buy at all prices
9.
Which statement shows income as a factor affecting demand?
a)
a. many people move into a suburb because it has affordable housing
b)
b. a factory in town gives its employees bonuses, and mall purchases increase
10.
Which statement best explains why demand for gasoline is inelastic...
a)
a. gasoline uses a large portion of a person's income
b)
b. gasoline prices are currently very high
c)
c. there is no widely available substitute fuel for cars
d)
d. people have already cut back their driving to the minimium
11.
What is a market demand curve?
a)
a. a table showing how much of a product a market is willing and able to buy
b)
b. a graph showing how much of a product a market is willing and able to buy
c)
c. a graph showing how much a product an individual is willing and able to buy
d)
d. a table showing how much of a product an individual is willing and able to buy
12.
Which is an example of consumer taste affecting demand?
a)
a. The sales of a cold medication rise after the FDA bans a rival drug.
b)
b. The sales of video games based on movies rise if the movies are hits.
c)
c. As people buy digital music players, they also buy songs to download.
d)
d. The government gives tax rebate and urges people to spend it.
13.
What is a market demand schedule?
a)
a. a table showing how much of a product a market will buy
b)
b. a graph showing how much of a product a market will buy
c)
c. a graph showing how much of a product an individual will buy
d)
d. a table showing how much of a product an individual will buy
14.
What do various points on a demand curve represent?
a)
a. change in factors of production
b)
b. change in elasticity
c)
c. change in marginal utility
d)
d. change in quantity demanded
15.
Which of the following describes a demand curve?
a)
a. It slopes downward from right to left
b)
b. It slopes downward from left to right
c)
c. It is bow-shaped
d)
d. It is a horizontal line
16.
What explains the shape of a demand curve?
a)
a. market size
b)
b. the law of diminishing marginal utility
c)
c. the supply curve
d)
d. the formula to calculate total revenue
17.
Why doesn't the electric company ever offer sale prices?
a)
a. a sale would encourage high usage and cause blackouts
b)
b. the government regulates electricity prices
c)
c. electric bills are so low that sales would not affect quantity demanded
d)
d. electricity is a necessity, so demand is inelastic
18.
Is this product elastic or inelastic? toothpaste
a)
a. elastic
b)
b. inelastic
19.
When you are hungry, you receive the most satisfaction form the first apple and less satisfaction from each additional apple. What explains this?
a)
a. law of elasticity of demand
b)
b. substitution effect
c)
c. income effect
d)
d. law of diminishing marginal utility
20.
What is the difference between a demand curve and a market demand curve?
a)
a. they slope in opposite directions from each other
b)
b. they always represent different products
c)
c. the market demand curve shows greater quantities demanded
d)
d. the demand curve is more useful for business owners to use
21.
Dylan's family buys next year's winter clothes in February to benefit from the end-of-the-season sales. What factor affects their demand for clothes?
a)
a. consumer expectation
b)
b. income
c)
c. consumer taste
d)
d. market size
22.
Skiers flock to a town in the Rockies in January, and restaurant business booms. What factor is affecting demand?
a)
a. market size
b)
b. income
c)
c. substitutes
d)
d. consumer taste
23.
What does an inelastic demand curve look like?
a)
a. steep slope
b)
b. veritcal line
c)
c. shallow slope
d)
d. horizontal line
24.
Which statement is an example of substitute goods affecting demand?
a)
a. an automobile maker lays off thousands, sales of electronic goods in that city fall
b)
b. as laptop computer sales increase, so do the sales of computer cases
c)
c. hi-tech companies lure people to a region, demand for housing rises
d)
d. a bumper crop of cotton lowers the price of cotton clothing, sales of silk shirts decrease
25.
According to the law of demand, what happens when prices go down?
a)
a. quantity demanded increases
b)
b. demand decreases
c)
c. quantity demanded decreases
d)
d. demand increases significantly
26.
What term is defined as goods that consumers demand more of when their incomes rise?
a)
a. complementary goods
b)
b. inferior goods
c)
c. substitute goods
d)
d. normal goods
27.
Many U.S. consumers have switched to wireless phones from traditional telephones. Which factor is affecting demand?
a)
a. substitutes
b)
b. complements
c)
c. market size
d)
d. expectations
28.
What term is defined as the change in the amount consumers will buy because the purchasing power of their money changes?
a)
a. consumer taste
b)
b. consumer expectation
c)
c. substitution effect
d)
d. income effect
29.
Is this product elastic or inelastic? milk
a)
a. inelastic
b)
b. elastic
30.
Is this product elastic or inelastic? table salt
a)
a. elastic
b)
b. inelastic
31.
A snowmobile rental shop asked its best customer how often he would rent at various rates. Which of the following will show the data on the graph?
a)
a. individual demand schedule
b)
b. market demand schedule
c)
c. individual demand curve
d)
d. market demand curve
32.
As sales of digital cameras increase, so do sales of photo printers. What factor is affecting demand?
a)
a. consumer expectation
b)
b. complements
c)
c. substitutes
d)
d. consumer taste
33.
Is this product elastic or inelastic? flat screen TV
a)
a. inelastic
b)
b. elastic
34.
Which of the following is most likely to have inelastic demand?
a)
a. 70 inch flat screen TV
b)
b. an expensive sports car
c)
c. an effective cancer fighting drug
d)
d. cosmetic surgery
35.
Is this product elastic or inelastic? movie tickets
a)
a. elastic
b)
b. inelastic
36.
Is this product elastic or inelastic? braces
a)
a. elastic
b)
b. inelastic
37.
Which statement shows consumer expectation affecting demand?
a)
a. the price of fuel containing ethanol drops, so gasoline sales deccrease
b)
b. Emma buys 10 pounds of coffee because crops are failing in Kenya
c)
c. Mikayla buys a new skirt style that she saw in a fashion magazine
d)
d. Mike's wages go up, so he buys an extra pair of basketball shoes
38.
A factory closes, laying off hundreds of workers, and consumer spending in the town falls. What factor is affecting demand?
a)
a. consumer taste
b)
b. consumer expectation
c)
c. income effect
d)
d. substitute goods
39.
Why is Figure 4.13 elastic?
a)
a. because as price goes down, there is very little change in quantity demanded
b)
b. because as price goes down, there is a greater change in quantity demanded
40.
What term is defined as the change in amount consumers will buy because they can buy a different product instead?
a)
a. income effect
b)
b. normal goods
c)
c. substitution effect
d)
d. inferior goods
41.
Which is an example of market size affecting demand?
a)
a. After a team wins the World Series, it becomes a fad to buy their caps.
b)
b. Restaurant visits drop after a hurricane causes a city to be evacuated.
c)
c. Nike becomes the most popular shoe to buy.
d)
d. Sales of potato chips drop after the price of pretzels falls by half.
42.
According to the law of demand, what is the relationship between quantity demanded and price?
a)
a. an orderly relationship
b)
b. a substitutionary relationship
c)
c. an inverse relationship
d)
d. a complementary relationship
43.
As gardeners tried to make their yards places for quiet retreat, sales of backyard fountains increases. What factor affecting demand does this illustrate?
a)
a. income
b)
b. consumer expectation
c)
c. market size
d)
d. consumer taste
44.
An actress sets off a craze for wearing camouflage clothing among her fans. What factor is affecting demand?
a)
a. consumer expectation
b)
b. complements
c)
c. consumer taste
d)
d. substitutes
45.
What do business owners use to gather information for market demand schedules?
a)
a. marginal untility
b)
b. income effect
c)
c. market research
d)
d. substitution effect
46.
On a demand curve, an increase in demand would shift your demand line...
a)
a. to the left
b)
b. to the right
47.
What assumption is used when making demand curves?
a)
a. all consumers lie about their purchasing habits
b)
b. availability of product is the most important variable
c)
c. all economic factors remain constant except price
48.
What are products that consumers demand less of when their incomes rise?
a)
a. complements
b)
b. inferior goods
c)
c. substitutes
d)
d. normal goods
49.
What does elasticity of demand measure?
a)
a. change in quantity demanded
b)
b. how responsive consumers are to price changes
c)
c. change in market size
d)
d. how much consumers respond to advertising
50.
Is this product elastic or inelastic? ice cream
a)
a. elastic
b)
b. inelastic
51.
What two factors are necessary for demand?
a)
a. desire for a good or service and its availability in the market
b)
b. familiarity with a good or service and the desire to pay for it
c)
c. the availability of a good or service and the ability to pay for it
d)
d. desire for a good or service and the ability to pay for it
52.
Which statement is an example of complementary goods affecting demand?
a)
a. when diets that limited bread became popular, sales of jelly dropped
b)
b. after a fashion model shared her diet secrets, yogurt sales went up
c)
c. when studies showed that fish contained toxins, sales of chickens rose
53.
Why is Figure 4.14 inelastic?
a)
a. because as price goes down, there is a greater change in quantity demanded
b)
b. because as price goes down, there is very little change in quantity demanded
54.
Why is Zorbaz's busiest month July?
a)
a. change in market size
b)
b. change in supply
c)
c. change in income
d)
d. change in quantity demanded
55.
Is this product elastic or inelastic? electricity
a)
a. inelastic
b)
b. elastic
56.
A coffee shop owner has surveyed all her customers about the frozen mocha drinks they will buy. What kind of a table might she use to show the information?
a)
a. individual demand curve
b)
b. market demand schedule
c)
c. market demand curve
d)
d. individual demand schedule
57.
Answer question #2...
a)
a. it is an inverse relationship
b)
b. it is a direct relationship
58.
How is total revenue calculated? (as found on p.122)
a)
a. multiplying price by quantity sold
b)
b. percent change divided by percent profit made at time of sales
59.
If quantity demanded does not change significantly when price changes, how is demand described?
a)
a. elastic
b)
b. inelastic
60.
Which is a teenager most likely to have demand for?
a)
a. athletic shoes
b)
b. luxury condominium
c)
c. new sports car
d)
d. building blocks
61.
Is this product elastic or inelastic? sports car
a)
a. elastic
b)
b. inelastic
62.
Rings are half price, so Jenna buys two. What affected her decision?
a)
a. substitution effect
b)
b. income effect
c)
c. consumer expectations
d)
d. consumer taste
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