# Economics Quiz Chapter 3

10 Questions  I  By Thaberman
This quiz will be over sections 1 and 2 in chapter 3

Changes are done, please start the quiz.

 1 What was the name of the muscial group in the section under Consumer Tastes and Preferences.  They were talking about the demand curve and shifting of prices.  __________________    ___________________
 2 Give me one example of the substitution effect.
 3 The Demand curve is a chart whereas the Demand schedule is a graph that is plotted?
 A. True
 B. False
 4 Consumer demand for _____________________ products is an example of the substitution effect at work.  Generic products are _____  _________________ name products.
 5 Choose the best response that explains the concept of diminishing marginal utility.  Is it:
 A. The 4th concept in the law of demands?
 B. The satisfaction received from consuming each additional unit, as that units price declines?
 C. I buy 4 tacos at \$1.00 a piece, because I will eat them all at one sitting?
 D. I buy 3 tacos at \$1.00 and then buy the 4th one at \$1.50 cents as my hunger diminishes?
 6 The law of demand states that an increase in a good's price causes a decrease in the quantity demanded and that a decrease in price causes an increase in the quantity demanded?
 A. True
 B. False
 7 If we have an increase in the demand curve (D2) we will have a shift to the right? If we have a decrease in the demand curve (D3) we will have a shift to the left?
 A. True
 B. False
 8 Explain what the difference is between demand and quantity demanded?
 9 What is the relationship between market size and what happens to the demand of a certain product.
 10 Check box all of the below examples that would be considered an Income Effect.
 A. If the price of a CD is lowered from \$15 dollars to \$10 dollars.
 B. If the price of a CD increases from \$15 dollars to \$18 dollars.
 C. If you received a demotion in your job and with it come a pay cut.
 D. If you are promoted and your boss gives you a raise which increases your pay \$1000 per week.
 E. You are fired from your workplace and have to go on Unemployment Insurance
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