Eco. Ch. 3

What term do economists use to describe the willingness and the act of buying?

• Utils
• Demand
• Price
• Supply

What usually happens to the demand curves for normal goods during depressions?

• They shift to the right
• They shift to the right and then to the left
• They remain unchanged
• They shift to the left

What does the rightward shift of a demand curve indicate?

• An increase in demand
• A decrease in demand
• An increase in the quantity demanded
• A change in price

What does the leftward shift of a demand curve indicate?

• An increase in demand
• A decrease in demand
• An increase in the quantity demanded
• A change in price

Who wrote The Theory of Political Economy?

• Carl Menger
• Adam Smith
• William Stanley Jevons
• Karl Marx

Which of these happens when a business firm changes the price of its product?

• Change in demand
• Change in quantity supplied
• Change in supply
• Change in quantity demanded

When incomes are rising, consumers prefer to buy _____ goods.

• normal
• substitute
• inferior
• complementary

When incomes are dropping, consumers prefer to buy _____ goods.

• normal
• substitute
• inferior
• complementary

A good that can replace another good is called a _____ good.

• normal
• substitute
• inferior
• complementary

A good that is often bought with another good is called a _____ good.

• normal
• substitute
• inferior
• complementary