ECONOMICS QUIZ

Question 1

an interaction between buyers and sellers of trading or exchange.

Answer 1

Market

Question 2

most common type of market because it is where we buy consumers goods.

Answer 2

goods market

Question 3

where the workers offer services and look for jobs, and where employers look for workers to hire.

Answer 3

labor market

Question 4

includes the stock market where securities of corporations are traded.

Answer 4

financial market

Question 5

is the willingness of a consumer to buy a commodity at a given price.

Answer 5

DEMAND

Question 6

shows the various quantities the consumer is willing to buy at various prices.

Answer 6

demand schedule

Question 7

shows how the quantity demanded of a good depends on its determinants, the most important of which is the price of the goods itself

Answer 7

demand function

Question 8

is felt when the change in the price of a good changes the consumer’s real income or purchasing power, which is the capacity to buy with a given income. In other words, purchasing power is the volume of goods and services one can buy with his/her income.

Answer 8

Income effect

Question 9

is felt when a change in the price of a good changes demand due to alternative consumption of substitute goods.

Answer 9

Substitution effect

Question 10

there is an inverse relationship between the price of a good and the quantity demanded for that good.

Answer 10

The Law of Demand

Question 11

Non-Price Determinants of Demand

Answer 11

✓ Income
✓ Taste
✓ Expectations
✓ Prices of related goods
✓ Population

Question 12

can cause an upward or downward change in the entire demand for the product and this change is referred to as a shift of the demand curve.

Answer 12

non-price determinants

Question 13

increase in the for a good will increase the demand for the complement

Answer 13

Complements

Question 14

goods that are used together

Answer 14

Complements

Question 15

The higher the population, the more consumers and the higher will be demand for the good.

Answer 15

number of consumers

Question 16

When a change in the price of a good causes the quantity demanded for that good to change, this is illustrated on the same demand curve and is a simple movement from one point to another on that curve.

Answer 16

Shifts of the Demand Curve

Question 17

the relationship between a range of prices and the quantities demanded at those prices,

Answer 17

demand

Question 18

a certain point on the demand curve or one quantity on the demand schedule.

Answer 18

quantity demanded

Question 19

curve

Answer 19

demand

Question 20

specific point on the curve.

Answer 20

quantity demanded

Question 21

quantity demanded at every given price for the entire market.

Answer 21

market demand

Question 22

sum of all the individual buyer’s demand curves.states that when the price of a good decreases, it is as if the buyer of the good’s income went up.

Answer 22

market demand

Question 23

states that when the price of a good decreases, it is as if the buyer of the good’s income went up.

Answer 23

income effect

Question 24

states that when the price of a good decreases, consumers will substitute away from goods that are relatively more expensive to the cheaper goods

Answer 24

substitution effect

Question 25

are goods that are consumed together.

Answer 25

Complements

Question 26

are goods where you can consume one in place of the other.

Answer 26

Substitutes

Question 27

If a buyer expects the price of a good to go down in the future, they hold off buying it today,

Answer 27

demand for that good decreases.

Question 28

if a buyer
expects the price to go up in the future

Answer 28

demand for the good today increases