USC ECON 224 Exam 2 questions n
answers graded A+ passed
The law of demand states that:
A. The greater the number of buyers in a marker, the lower the price.
B. Price and quantity demanded are directly related.
C. The lower the cost the lower the price.
D. Price and quantity demanded are inversely related. - correct answer ✔✔ D. Price and
quantity demanded are inversely related.
If an individual demands a particular good, it means that he or she:
A. Is willing and able to purchase the good at some price.
B. Has a strong desire for the good.
C. Must need the good.
D. Prefers the good over all other choices. - correct answer ✔✔ A. Is willing and able to
purchase the good at some price.
Which of the following is true about demand?
A. Demand reflects the desire for a good but not necessarily the ability to buy it.
B. In order to demand a good, a person must be willing and able to buy the good.
C. When drawing a demand curve, influences such as price do not change.
D. Demand reflects the ability to buy a good but not necessarily the desire to do so. - correct
answer ✔✔ B. In order to demand a good, a person must be willing and able to buy the good.
Which of the following is a determinant of demand for a good?
A. Consumer income.
,B. The number of available workers.
C. Prices of factor inputs.
D. Technology - correct answer ✔✔ A. Consumer income.
Which of the following is not a determinant of demand?
A. Income.
B. Tastes.
C. The cost of factors of production.
D. Expectations of the future price. - correct answer ✔✔ C. The cost of factors of production.
The market demand curve is calculated by:
A. Summing the price from individual demand curves.
B. Averaging the price demanded from individual demand curves.
C. Summing the quantities demanded from individual demand curves.
D. Averaging the quantities demanded from individual demand curves. - correct answer ✔✔ C.
Summing the quantities demanded from individual demand curves.
Which of the following causes the market demand curve for a good to shift?
A. The cost of factors of production.
B. The number of buyers in the market.
C. The expectations about future sales.
D. A producer's income. - correct answer ✔✔ B. The number of buyers in the market.
Which of the following refers to the satisfaction a consumer receives from the consumption of a
good?
A. Price elasticity.
B. Law of demand.
, C. Equilibrium price.
D. Utility. - correct answer ✔✔ D. Utility.
The pleasure or satisfaction obtained from goods and services is known as:
A. Price elasticity of demand.
B. Total revenue.
C. Utility.
D. Ceteris paribus. - correct answer ✔✔ C. Utility.
The difference between total utility and marginal utility is that:
A. Total utility is the satisfaction from consuming one additional unit of a good while marginal
utility is the complete satisfaction from consuming a good.
B. Total utility is the complete satisfaction from consuming a good while marginal utility is the
satisfaction from consuming one additional unit of a good.
C. Both represent the satisfaction obtained from most all goods and services.
D. Total utility is the satisfaction from consuming a good while marginal utility is the satisfaction
from consuming services. - correct answer ✔✔ B. Total utility is the complete satisfaction from
consuming a good while marginal utility is the satisfaction from consuming one additional unit
of a good.
Which of the following statements is true?
A. As consumption increases, total utility must increase.
B. Total utility increases initially and then decreases as marginal utility approaches zero.
C. If marginal utility is greater than zero, total utility is increasing.
D. If marginal utility is zero, total utility is at a minimum. - correct answer ✔✔ C. If marginal
utility is greater than zero, total utility is increasing.
answers graded A+ passed
The law of demand states that:
A. The greater the number of buyers in a marker, the lower the price.
B. Price and quantity demanded are directly related.
C. The lower the cost the lower the price.
D. Price and quantity demanded are inversely related. - correct answer ✔✔ D. Price and
quantity demanded are inversely related.
If an individual demands a particular good, it means that he or she:
A. Is willing and able to purchase the good at some price.
B. Has a strong desire for the good.
C. Must need the good.
D. Prefers the good over all other choices. - correct answer ✔✔ A. Is willing and able to
purchase the good at some price.
Which of the following is true about demand?
A. Demand reflects the desire for a good but not necessarily the ability to buy it.
B. In order to demand a good, a person must be willing and able to buy the good.
C. When drawing a demand curve, influences such as price do not change.
D. Demand reflects the ability to buy a good but not necessarily the desire to do so. - correct
answer ✔✔ B. In order to demand a good, a person must be willing and able to buy the good.
Which of the following is a determinant of demand for a good?
A. Consumer income.
,B. The number of available workers.
C. Prices of factor inputs.
D. Technology - correct answer ✔✔ A. Consumer income.
Which of the following is not a determinant of demand?
A. Income.
B. Tastes.
C. The cost of factors of production.
D. Expectations of the future price. - correct answer ✔✔ C. The cost of factors of production.
The market demand curve is calculated by:
A. Summing the price from individual demand curves.
B. Averaging the price demanded from individual demand curves.
C. Summing the quantities demanded from individual demand curves.
D. Averaging the quantities demanded from individual demand curves. - correct answer ✔✔ C.
Summing the quantities demanded from individual demand curves.
Which of the following causes the market demand curve for a good to shift?
A. The cost of factors of production.
B. The number of buyers in the market.
C. The expectations about future sales.
D. A producer's income. - correct answer ✔✔ B. The number of buyers in the market.
Which of the following refers to the satisfaction a consumer receives from the consumption of a
good?
A. Price elasticity.
B. Law of demand.
, C. Equilibrium price.
D. Utility. - correct answer ✔✔ D. Utility.
The pleasure or satisfaction obtained from goods and services is known as:
A. Price elasticity of demand.
B. Total revenue.
C. Utility.
D. Ceteris paribus. - correct answer ✔✔ C. Utility.
The difference between total utility and marginal utility is that:
A. Total utility is the satisfaction from consuming one additional unit of a good while marginal
utility is the complete satisfaction from consuming a good.
B. Total utility is the complete satisfaction from consuming a good while marginal utility is the
satisfaction from consuming one additional unit of a good.
C. Both represent the satisfaction obtained from most all goods and services.
D. Total utility is the satisfaction from consuming a good while marginal utility is the satisfaction
from consuming services. - correct answer ✔✔ B. Total utility is the complete satisfaction from
consuming a good while marginal utility is the satisfaction from consuming one additional unit
of a good.
Which of the following statements is true?
A. As consumption increases, total utility must increase.
B. Total utility increases initially and then decreases as marginal utility approaches zero.
C. If marginal utility is greater than zero, total utility is increasing.
D. If marginal utility is zero, total utility is at a minimum. - correct answer ✔✔ C. If marginal
utility is greater than zero, total utility is increasing.
