Economic Concepts Quiz

After completing this chapter, you should be able to describe the nature of what economic concept?

• Investment

• Demand

• Consumption

• Production

What will you be able to summarize regarding supply after finishing this chapter?

• The history of supply

• The nature of supply and related changes

• The political impact on supply

• The cultural aspects of supply

What will you be able to explain about markets at the end of this chapter?

• How markets are structured

• How markets reach equilibrium

• How markets influence politics

• How markets are regulated

What is demand?

• A) A relationship between a product's marketing strategy and its sales.

• B) A relationship between a product's price and quantity demanded.

• C) A measure of how much product is produced.

• D) A calculation of the profit made from selling a product.

How is demand typically represented?

• A) With a bar graph.

• B) With a pie chart.

• C) With a schedule or curve.

• D) With a scatter plot.

What does the law of demand state?

• A) Price and quantity demanded are directly related.

• B) Price and quantity demanded are not related.

• C) Price and quantity demanded are inversely related.

• D) Quantity demanded is unaffected by price.

What is market demand?

• A) The total revenue generated from selling a product in a market.

• B) The average quantity demanded by a single consumer in a market.

• C) The sum of quantities demanded by all consumers in a market.

• D) The maximum price consumers are willing to pay in a market.

According to the demand schedule for strawberries, what is the quantity demanded when the price is $2.00 per kg?

• 1 kg per month

• 2 kg per month

• 3 kg per month

• 4 kg per month

What does point 'a' on the demand curve for strawberries indicate?

• A price of $2.50 per kg and a quantity demanded of 1 kg per month

• A price of $2.00 per kg and a quantity demanded of 2 kg per month

• A price of $1.50 per kg and a quantity demanded of 3 kg per month

• A price of $1.00 per kg and a quantity demanded of 4 kg per month

As the price of strawberries decreases from $2.50 to $1.50 per kg, what happens to the quantity demanded?

• It remains constant

• It decreases

• It increases

• It is not shown on the graph