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BJU Economics Chapter 3 Flashcards | StudBud
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BJU Economics Chapter 3
BJU Economics Chapter 3
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Answers
1
Complementary goods are those that a household uses in place of another good
True
False
2
What happens immediately after a future sale price on an good is known?
the demand immediately goes up
the demand does not change
the demand immediately goes down
the price goes down
3
Which is
NOT
one of the function of prices?
giving incentives
increasing utility
providing information
redistributing income
4
A graph that demonstrates Jevon's principle would be a ___.
marginal utility curve
demand curve
subjective value curve
supply curve
5
What economic principle did Ludwig von Mises explore?
government control
diminishing value
subjective value
free markets
6
Which pair are an example of complimentary goods?
diamonds and pearls
peanut butter and ham
steak and plates
peanut butter and jelly
7
What term do economists use to describe the act of buying?
value
demand
cost
price
8
A marginal utility curve is a change in demand?
False
True
9
Human relationships would never be effected by marginal utility.
False
True
10
What does a change in demand mean?
increased demand means more people are buying the good
any change in demand is based on its intrinsic value
decreased demand means fewer people like the good
not much really demand does not mean anything
11
How does Menger's principle impact the law of demand?
because of intrinsic value people buy more when prices are high
value does not effect how much people buy
because of subjective value more people buy at lower prices
everyone values things the same
12
Demand for most goods rarely falls because of preferences in tastes.
False
True
13
What will most often cause demand to increase?
increasing the perceived value of a good
changes in weather
raising prices of a good or service
a sale on a particular good or service
14
What are complimentary goods?
items that are rarely bought at the same time
items bought when another item is sold out
items that make people feel good
items that are often bought together
15
A leftward shift in the demand curve means __.
decreased demand
nothing it's still just a chart
decreased intrinsic value
increased demand
16
To an economist, demand is the overall consumer desire for a particular product
True
False
17
Complete the statement: ... the lower the price charged ___.
the value of the good will decrease
the demand for the good will increase
the demand for the good will decrease
the value of the good will increase
18
What is the most important factor of production?
labor
entrepreneurship
capital
land
19
People tend to get less and less satisfaction from the same goods over time.
False
True
20
Which is a reason for a change in demand (multiple right answers)
changes in social status
changes in price
change in income
changes in preference
21
What does a rightward shift in the demand curve mean?
the economy is in recession
increased demand
decreased demand
nothing it's just a chart
22
Which is NOT true about the law of demand?
subject value impacts the amount of demand
prices have an impact on the amount of demand
inferior goods will never have a high demand
the demand for normal goods changes with price
23
What is economics?
a math class
the science of why people make choices
a class about money
the study of government and business
24
Which would likely cause a corn farmer to buy more corn seed?
the current interest rates
The price of corn chips
the current market for real estate
the price of fertilizer
25
What is a substitute good?
artificial sweeteners, sugar substitute
a teacher who watches the class when the real teacher is out
the cheaper item, generic alternative
a replacement item for the normal good or service
26
Why are most goods not simply normal goods?
subject value means goods can be in all categories
intrinsic avlue makes most goods substitute goods
Carl Menger said so
normal goods are the most common ones bought
27
What would be a complementary item for peas?
carrots
blender
curtains
toast
28
What would be a complementary item for bacon?
ice cream
eggs
ham
pork chops
29
Which of the following usually comes first?
increased store orders for a product
increased manufacture of a product
increased production of a product
increased consumption of a product
30
What reason for change in demand do normal and inferior goods illustrate?
change in income
change in price
change in preference
change in expectations
31
What would make the previous question true?
normal goods are only for the wealthy
normal goods change in demand with change in price
normal good are the basic goods
normal goods are everyday items
32
Normal goods are those most people own.
True
False
33
If a person's gets 10 utils from their favorite candy bar, how many will they get the next time they eat it?
10 Utils
9 Utils
12 Utils
15Utils
34
A drop in income would have the least impact on demand for ___.
lobster
jewelry
chocolate
rice
35
Why is the previous question false?
demand is determined by manufacturers
demand is also the act of buying
demand is based on value
demand is equal to desire
