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