#1
What is the definition of demand in economics?
The quantity of a good or service that producers are willing to supply.
The quantity of a good or service that consumers are willing to buy at a given price and time.
The cost of producing a unit of a good or service.
The total revenue generated from selling a good or service.
#2
What is the law of demand in economics?
As the price of a good or service decreases, the quantity demanded increases, and vice versa.
As the price of a good or service decreases, the quantity demanded decreases, and vice versa.
The quantity demanded is always constant regardless of price changes.
The quantity demanded is inversely proportional to the cost of production.
#3
What is the concept of 'utility' in economics, particularly in relation to demand?
The total revenue generated from selling a good or service.
The satisfaction or pleasure derived from consuming a good or service.
The cost of producing a unit of a good or service.
The change in demand over time.
#4
What is the concept of 'ceteris paribus' and how does it relate to the study of demand?
It means 'all else equal' and is used to isolate the impact of one variable while holding others constant.
It refers to the idea that demand is always constant, regardless of other factors.
It signifies that demand is always changing and dynamic.
It is a Latin term for 'supply and demand.'
#5
What is the concept of 'marginal utility' in economics, and how does it influence consumer choices?
The total satisfaction derived from consuming one more unit of a good or service.
The average satisfaction derived from consuming a good or service.
The total revenue generated from selling a good or service.
The cost of producing a unit of a good or service.
#6
Which of the following is not a determinant of demand?
Income of the consumer
Price of the good or service
Availability of substitute goods
Cost of production
#7
What is the income effect in relation to demand?
The change in demand due to a change in the price of a substitute good.
The change in demand due to a change in consumer income.
The change in demand due to a change in the cost of production.
The change in demand due to a change in government regulations.
#8
Which of the following is an example of a complementary good?
Tea and coffee
Peanut butter and jelly
Butter and margarine
Apples and oranges
#9
What is the cross-price elasticity of demand?
The responsiveness of quantity demanded to a change in the price of the same good.
The responsiveness of quantity demanded to a change in the price of a different good.
The total revenue generated from selling a good or service.
The change in demand due to a change in consumer income.
#10
How does the concept of 'inferior goods' differ from 'normal goods' in terms of demand?
Inferior goods are always of lower quality than normal goods.
Normal goods are always more expensive than inferior goods.
The demand for inferior goods decreases as income rises, while the demand for normal goods increases.
The demand for normal goods decreases as income rises, while the demand for inferior goods increases.
#11
What role does consumer expectations play in affecting demand?
Consumer expectations have no impact on demand.
Consumer expectations can influence the demand for a good or service.
Consumer expectations only impact supply, not demand.
Consumer expectations only matter for luxury goods.
#12
How does the substitution effect impact the elasticity of demand?
It makes demand more elastic.
It makes demand more inelastic.
It has no impact on the elasticity of demand.
It depends on the type of good or service.
#13
In the context of demand, what does the term 'elasticity' refer to?
The responsiveness of quantity demanded to a change in price.
The total revenue generated from selling a good or service.
The cost of producing a unit of a good or service.
The change in demand over time.
#14
How does the expectation of future prices affect current demand?
It has no impact on current demand.
It increases current demand.
It decreases current demand.
It depends on the type of good or service.
#15
How does the availability of close substitutes impact the elasticity of demand?
It makes demand more elastic.
It makes demand more inelastic.
It has no impact on the elasticity of demand.
It depends on the price level of the substitutes.
#16
What is the concept of the 'Veblen effect' in relation to demand?
The increase in demand due to the prestige associated with a higher price.
The decrease in demand for luxury goods as their prices rise.
The increase in demand for inferior goods as their prices rise.
The decrease in demand due to the availability of substitutes.
#17
In the context of demand, what does 'shift in the demand curve' refer to?
A movement along the demand curve due to a change in price.
A change in quantity demanded at every price point.
A change in demand caused by a factor other than price.
The total revenue generated from selling a good or service.
#18
How does the concept of 'time horizon' affect the elasticity of demand?
Shorter time horizons make demand more elastic.
Shorter time horizons make demand more inelastic.
Time horizon has no impact on the elasticity of demand.
It depends on the type of good or service.
#19
How does the concept of 'network effects' impact the demand for certain goods or services?
It has no impact on demand.
It increases demand as more people use the good or service.
It decreases demand as more people use the good or service.
It only affects supply, not demand.