Download Chapter-4-Form-A - Maples Elementary School

Chapter 4-Exam
Form A
1. Marginal utility is when…..
A.
A consumer has additional satisfaction or usefulness form having one more unit
of the product.
B.
A consumer has additional satisfaction when the item is on sale.
C.
. A consumer receives the product for free.
D.
A consumer is the first person to purchase the unit.
2. Which of the following choices could cause the movement shown in this graph?
a.an increase in the price of film
c.an increase in the price of cameras
b. decrease in the price of film
d.a decrease in the price of cameras
3. The Law of Demand means that:
A.
Consumers will buy more of a product at lower prices and less at higher prices
B.
Consumers will only buy products that they need.
C.
Consumers will only buy products made in the USA
D.
Consumers will buy products that they demand.
4. Microeconomics is the part of economics that study:
A.
Science trends in the United States.
B.
Computers and software for Microsoft.
C.
Small units, such as individuals and firms
D.
Small particles of matter used in industry.
5. Demand needs to meet three conditions:
A.
Desire, hope and ability to buy a product
B.
Ability, enjoyment and money to buy a product
C.
Willingness, enjoyment and currency to buy a product
D.
Desire, ability and willingness to buy a product.
6. What does the movement from b' to b on the graph represent?
a. an increase in demand
c. decrease in demand
b. an increase in quantity demanded
d..a decrease in quantity demanded
7.Diminishing marginal utility is when….
A.
The item is on sale.
B.
The item is only useful to one person
C.
It is a decrease in satisfaction or usefulness from having one more item of the
same product.
D.
The item is very expensive.
8. If the price of milk increases then the demand for cereal decreases this is because
the two items are:
A- substitutes
B. Consumer tastes C. Complements 4 ratios
9. Based on the graph, how does the market demand for concert tickets change if the
price increases from $30 to $40?
A .the demand curve shifts to the right
b. the demand curve shifts to the left
c. quantity demanded decreases by 4,000
d. quantity demanded increases by 4,000
10. The idea of eating a dozen doughnuts, when you don’t want to eat more than
three doughnuts is the concept of….
A.
B.
C.
D.
Doughnut depression demand
Marginal Utility
Substitution effect
Diminishing marginal utility
11. When the price of an item drops and that causes the demand for an item to
increase this is called….
A.
B.
C.
D.
Consumer tastes
Income effect
Consumer income
Substitution Effect
12. These items are inelastic….
A.
Medicine , Gasoline, Drinking Water
B.
Gasoline, I-Phone, Michael Kors purse
C.
Medicine , Tennis shoe, backpack
D.
Drinking water, concert ticket, diamond ring
Fresh
tomatoes
Can
purchase be
delayed?
Are
adequate
substitutes
available?
Does
purchase
use a large
portion of
income?
Gasoline from
a particular
station
yes
yes
Products
Gasoline in
general
no
Services of
medical
doctors
no
Butter
yes
yes
yes
no
no
yes
no
yes
yes
yes
no
13. Which products shown in the table are likely to have inelastic demand?
a. gasoline in general, services of medical doctors
b. fresh tomatoes, gasoline from a particular station, butter
c. fresh tomatoes, gasoline in general, butter
d. gasoline from a particular station, gasoline in general, butter
14 What makes the demand for a specific item elastic or inelastic?
A.
Can the purchase be delayed, are substitutes available, does the purchase use a
large portion of income.
B.
Are substitutes available, does the item have complements, how many
consumers are there.
C.
Can the purchase be delayed, does the purchase make the consumer happy, are
substitutes available.
D.
Does the purchase use a large portion of income, does the item have
complements, are substitutes available?
15. For most products and services, an increase in price results in
a. demand for less of the product.
b. demand for more of the product.
c. reduced demand for substitutes.
d. increased demand for complements.
16. An increase in the price of milk causes a decrease in the demand for cereal. The
two products are
a. substitutes.
c. unrelated.
b. complements.
d. demand elastic.
17. If a modest price increase has little or no effect, the demand for the product is
a. complementary.
c. elastic.
b. inelastic.
d. unit elastic.
18. A business doubled the price of a product in order to increase profits. Which of the
following scenarios might have occurred?
a. A sharp increase in revenues demonstrated the elasticity of the product.
b. A small increase in revenues demonstrated the unit elasticity of the product.
c. A dramatic decline in revenues demonstrated the elasticity of the product.
d. A dramatic decline in revenues demonstrated the inelasticity of the product.
19Which of the following events could cause the movement shown in the graph?
a. a decrease in income
b. an increase in population
c. a decrease in the price of a substitute d. an increase in the price of a complement
20. Consumers' willingness to replace a costly item with a less costly item is an example
of
a. the substitution effect.
c. demand elasticity.
b. the income effect.
d. complements.
21. When a customer's need for a product is not urgent, demand tends to be
a. inelastic.
c. complementary
b. elastic
d. Unit Elastic