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Multiple-choice questions:
‘Demand’:
- is everything that people need;
- is everything that people want;
- is downward sloping;
- is the quantity people need for period of time;
- is the quantity buyers wish to purchase per time period at each price.
A market price:
- is the result of interaction between consumers demand and producers supply;
- is what consumers are willing to pay;
- can leave some goods unsold;
- can lead to shortages of certain goods;
- has been set by the government;
A ‘demand schedule’:
- is a particularly difficult itinerary;
- sets out amounts demanded at various prices;
- is always a straight line;
- shows diagrammatically how demand changes with income;
- none of the above.
‘Effective demand’:
- is total demand in the economy;
- is the demand of a single individual;
- shows how quantity demanded varies with price;
- shows how quantity demanded varies with income;
- is the desire to buy a good backed by the ability to do so.
A demand function:
- is a particularly difficult occasion;
- sets out amounts demanded at various prices;
- is always a straight line;
- is a mathematical expression to show the determinants of demand in a simple formula;
- is none of the above