Chapter 4- Section 1

Question 0

What is microeconomics?

Answer 0

The area of economics that deals with behavior and decision-making by small units (individuals and firms)

Question 1

What three factors determine the demand for a product?

Answer 1

A desire for it and the ability and willingness to pay for it

Question 2

What is the purpose of a demand schedule?

Answer 2

To show the various quantities demanded any particular product at all prices that might prevail in the market at a given time

Question 3

What is the demand curve?

Answer 3

Graph showing the quantity demanded that each and every price that might prevail in the market

Question 4

How is a demand curve similar to a demand schedule? How is it different?

Answer 4

Both show the quantity demanded at each and every price but one is a chart and the other is a curve

Question 5

What does the law of demand state?

Answer 5

The quantity demanded of a good or service varies inversely with its price; when the price goes up quantity demanded goes down when the price goes down quantity demanded goes up

Question 6

What does the market curve show?

Answer 6

The quantities demanded by everyone who is interested in purchasing the product

Question 7

What is marginal utility?

Answer 7

The extra usefulness or satisfaction of person gets from acquiring or using one more unit of a product

Question 8

How does the principle of diminishing marginal utility affect how much people are willing to pay?

Answer 8

Using additional quantities of the product this menaces satisfaction. It reduces the willingness to pay

Question 9

States that the extra satisfaction we get from using additional quantities of the product begins to diminish

Answer 9

Finishing marginal utility

Question 10

Describes the amount of usefulness or satisfaction that someone gets from the use of the product

Answer 10

Utility