Question

1. higher prices reduce a persons

a. selling power
b. desire to spend
c. financial intelligence
d. purchasing power

1. ceteris paribus means

a. all things important
b. money market
c. all things equal
d. more than enough

1. a shift to the left in a demand curve indicates

a. decrease in demand
b. decrease in supply
c. increase in demand
d. increase in supply

1. a shift to the right in a supply curve indicates

a. decrease in demand
b. decrease in supply
c. increase in demand
d. increase in supply

1. any change in the ____________ of an input will affect supply.

a. income
b. manufacturing date
c. cost
d. name

1. determinants of supply include the following except.

a. subsidies/taxes
b. price of other goods
c. resource cost
d. marketing strategies

1. which of these is a determinant of demand?

a. number of buyers
b. subsidies/taxes
c. government intervention
d. none of the above

1. an example of a product with inelastic demand is

a. burger king hamburgers
b. designer clothing
c. gasoline
d. concert tickets

1. the law of diminishing marginal utility states.

a. people will buy more of a cheaper product
b. people will but less of a cheaper product
c. as a person consumes a product their satisfaction increases
d. as a person consumes a product their satisfaction decreases

1. complements are goods that are bought and used ____________.

a. separately
b. together
c. competition

Explanation:

1. Higher prices mean a person can buy fewer goods with the same amount of money, reducing purchasing power.
2. Ceteris paribus is a Latin term meaning all other things being equal.
3. A left - shift in the demand curve indicates a decrease in the quantity demanded at each price level.
4. A right - shift in the supply curve means more quantity is supplied at each price level, an increase in supply.
5. The cost of an input affects the cost of production and thus supply.
6. Marketing strategies do not directly determine supply; factors like subsidies/taxes, price of other goods, and resource cost do.
7. The number of buyers is a determinant of demand as more buyers mean more potential purchases.
8. Gasoline has inelastic demand as consumers need it regardless of price changes to a large extent.
9. The law of diminishing marginal utility states that as a person consumes more of a product, the additional satisfaction (marginal utility) decreases.
10. Complements are goods that are used together, like cars and gasoline.

Answer:

1. d. Purchasing power
2. c. All things equal
3. a. Decrease in Demand
4. d. Increase in Supply
5. c. cost
6. d. Marketing Strategies
7. a. Number of Buyers
8. c. gasoline
9. d. As a person consumes a product their satisfaction decreases
10. b. together