Which of the following are examples of non-price determinants that impact demand of products.

Income, Demographics, Advertising

Which of the following BEST describes marginal cost

The cost of adding one more good/service

Which is the BEST definition of Elasticity of Demand?

How quickly a consumer finds a substitute when prices go up

Which description BEST describes Substitution Effect?

Price goes up for product, consumer buys a different product

Which description BEST describes a person's economic demand for a product?

Desire to have the service/good + The ability to pay for it

When should businesses cease producing a good?

When marginal cost is greater than marginal revenue.

Demand for a good is elastic when....

total revenue increases with each decrease in price

Which of the following statements BEST describe Income Effect?

As price increases, people purchase less of all products

What is the BEST definition for total revenue?

The total amount earned from all goods and services sold

What does it mean when a supply curve shifts to the right?

More can be supplied at every price

Which scenario BEST illustrates a subsidy?

Government pays corporation to make more fuel efficient cars

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Economics, Topic Three, Supply and Demand

20 termsStudBud Administration205 plays

Using Pearson's Economics Textbook, the first six sections of topic three are reviewed in this Quiz.

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Questions 20

Answers

1
Which of the following are examples of non-price determinants that impact demand of products.
Substitution, Income, Demand
Income, Demographics, Advertising
Marginal, Goods, and Curves
Elasticity, Calculations, and Supply
2
Which of the following BEST describes marginal cost
The cost of adding one more good/service
The total revenue of a firm minus taxes paid
The cost for businesses that change regularly
The cost for businesses that do not change.
3
Which is the BEST definition of Elasticity of Demand?
The cost of making one more good/service
How quickly a consumer finds a substitute when prices go up
How quickly a business can increase production of a good
The ability of a business to shift supply curves to the left
4
What BEST describes a company's situation if they produces less product by adding an employee?
Increasing marginal return
Negative marginal return
Diminishing marginal return
Surmounting marginal return
5
The quantity of an item offered for sale at a particular price is___. Choose the BEST answer.
Law of Supply
Supply
Law of Demand
Marginal Cost
6
What are taxes imposed on the sale of a good beyond a sales tax? Cigarettes have these....
Excise tax
Property taxes
Tariff
Income tax
7
Which description BEST describes Substitution Effect?
Price goes down for a product, the consumer feels wealthier
As price goes up for a product, the consumer feels poorer
Price goes up for product, consumer buys a different product
As price goes down for a product, the consumer feels poorer
8
What is BEST described as ...Producers will make more of a good as the price increases?
Supply
Law of Supply
Law of Demand
Marginal Revenue
9
Which description BEST describes a person's economic demand for a product?
Ability to Pay for Good + Desire to sell the Product
Desire to have the service/good + The ability to pay for it
Desire to have the service/good + Desire to Sell the Product
Desire to have the service/good
10
When should businesses cease producing a good?
When fixed costs are greater than variable costs.
When marginal revenue is greater than marginal cost.
When variable costs are greater than fixed costs
When marginal cost is greater than marginal revenue.
11
Demand for a good is elastic when....
the demand curve shifts to the right
total revenue increases with each decrease in price
total revenue decreases with each decrease in price
price changes have no effect on total revenue
12
Which of the following goods/service has the MOST inelastic demand?
Books
Water
Calendars
Cereal
13
Increased wages for foreign workers have what effect on America's supply of foreign goods?
Increased supply
Decreased supply
Additional excise taxes
Decreased marginal costs
14
Which of the following statements BEST describe Income Effect?
As price increases, people purchase less of all products
As price increases, people purchase other products
As price increases, people feel wealthier & increase demand
As price decreases, people purchase less of all products
15
Which of these is created whenever buyers and sellers exchange goods and services?
Scarcity
Surplus
Elasticity
Market
16
Which of the following is NOT a fixed cost for a business?
Salaries
Rent of Mortgage Payment
Property tax
Hourly Wages
17
What is the BEST definition for total revenue?
Fixed cost plus Variable cost divided by all taxes
The profit a company earns minus taxes removed
All things held constant
The total amount earned from all goods and services sold
18
Product X is in high demand. The price of it rises by 15%. What will most likely happen next?
Price of Natural Resources increase
Market Supply will increase
Excise taxes will occur
Consumer Demand will increase
19
What does it mean when a supply curve shifts to the right?
Less can be supplied at the every price
Demand for the product has increased
More can be supplied at every price
Demand for the product has decreased
20
Which scenario BEST illustrates a subsidy?
Government pays corporation to make more fuel efficient cars
Business uses more workers & experiences diminishing returns
Government creates a extra tax on items that are unhealthy
Business uses advertising to increase demand for product

Economics, Topic Three, Supply and Demand Flashcards | StudBud