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Econ 211

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Chapter 5: The Demand for Goods

Multiple Choice Questions

THE DETERMINANTS OF DEMAND

1. Status and ego considerations in consumption are: A) Sociopsychiatric explanations of demand. C) An example of income. B) Economic determinants of demand. D) All of the above.

Answer: A Type: Basic Understanding Page: 93

2. A movement along a given demand curve between two prices refers to: A) The price elasticity of demand. C) A change in quantity demanded. B) A change in demand. D) The law of diminishing marginal utility.

Answer: C Type: Definition Page: 94

3. When the demand for a good increases: A) Consumers are willing and able to pay only lower prices for any given quantity of the good. B) Consumers desire to have more of the good. C) Consumers are willing and able to purchase greater quantities of the good at any given price. D) There is movement along the demand curve.

Answer: C Type: Definition Page: 94

THE DEMAND CURVE

4. Utility refers to the: A) Satisfaction obtained from a good or service. B) Additional satisfaction obtained from one more unit of a good or service. C) Willingness to buy specific quantities of a good or service at a particular price. D) Decrease in satisfaction as more of a good or service is consumed.

Answer: A Type: Definition Page: 95

5. Which of the following determinants of demand is most directly an indication of a consumer's utility for a good? A) Income. B) Tastes. C) Expectations of future prices. D) Other goods (availability and prices).

Answer: B Type: Basic Understanding Page: 95

6. The amount of satisfaction obtained from consumption of an additional unit of a good or service is: A) Never negative. B) Total utility. C) A function of supply.

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