Question 1
Demand is:
A.
Government spending B.
Only desire C.
Willing and able to buy D.
Only production
Question 2
A change in the good's own price causes:
A.
Movement along demand B.
Shift of supply only C.
Shift of demand D.
Market failure
Question 3
What is meant by diminishing marginal utility?
A.
Movement up along D when price rises. B.
Population, Advertising, Substitutes, Income, Fashion/trends, Interest rates, Complements — non-price demand shifters. C.
Each extra unit gives less additional satisfaction — explains downward slope. D.
As price falls, quantity demanded rises, ceteris paribus.
Question 4
What is meant by utility?
A.
Satisfaction from consumption. B.
Caused by non-price factors — new D curve. C.
As price falls, quantity demanded rises, ceteris paribus. D.
Population, Advertising, Substitutes, Income, Fashion/trends, Interest rates, Complements — non-price demand shifters.
Question 5
A rise in income (normal good) causes:
A.
Shift in demand right B.
Shift in supply left C.
Movement up D D.
No change
Question 6
What is meant by shift of demand?
A.
Population, Advertising, Substitutes, Income, Fashion/trends, Interest rates, Complements — non-price demand shifters. B.
As price falls, quantity demanded rises, ceteris paribus. C.
Movement down along D when price falls. D.
Caused by non-price factors — new D curve.
Question 7
A successful advertising campaign for a brand will:
A.
Reduce PED to zero B.
Shift supply left C.
Cause only a movement along D D.
Shift demand right
Question 8
In PASIFIC, 'A' stands for:
A.
Aggregate supply B.
Autonomous consumption C.
Average cost D.
Advertising
Question 9
What is meant by marginal utility?
A.
End users of goods/services. B.
Each extra unit gives less additional satisfaction — explains downward slope. C.
Satisfaction from one additional unit. D.
Population, Advertising, Substitutes, Income, Fashion/trends, Interest rates, Complements — non-price demand shifters.
Question 10
What is meant by pasific?
A.
Population, Advertising, Substitutes, Income, Fashion/trends, Interest rates, Complements — non-price demand shifters. B.
Movement up along D when price rises. C.
Satisfaction from consumption. D.
Caused only by a change in the good's own price.
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