Applied Economics - Quiz 1

The total cost incurred by producing each additional unit of product.

• Incremental Cost

• Average Cost

• Taxation Cost

• Supply Cost

TRUE OR FALSE: “Q” stands for a change in price.

• TRUE

• FALSE

A theory that uses marginal analysis because it assumes that people make decisions by weighing incremental benefits from expected additional costs, all measured from the realities of the production possibilities frontier.

• Quality Theory

• Demand Theory

• Supply Theory

• Price Theory

Full name of your Applied Economics teacher. ALL CAPS.

This is a type of good that if a certain good’s price, its demand also would decrease, however, another good that is similar to that good would increase the demand.

• Complementary Goods

• Normal Goods

• Veblen Goods

• Substitute Goods

This is a type of good that if a certain good increase its price, another good decreases its demand.

• Complementary Goods

• Normal Goods

• Veblen Goods

• Substitute Goods

This is a type of good that are best exemplified by branded consumer products that consumers will buy, regardless of the state of the economy whether it is doing well or is in a recession.

• Complementary Goods

• Normal Goods

• Veblen Goods

• Substitute Goods

Which of the statement is TRUE for Inferior Goods?

• These are other goods that do not follow the pattern.

• This is a type of good that if a certain good’s price, its demand also would decrease, however, another good that is similar to that good would increase the demand.

• This is a type of good that are best exemplified by branded consumer products that consumers will buy, regardless of the state of the economy whether it is doing well or is in a recession.

• This is a type of good that if a certain good increase its price, another good decreases its demand.

If E = 0, it is perfectly elastic.

• TRUE

• FALSE

What is this relationship?

• PERFECTLY INELASTIC

• INELASTIC

• UNITARY ELASTIC

• PERFECTLY ELASTIC

• ELASTIC