1. What is a demand schedule?
Choices:
A. A graph illustrating the relationship between price and quantity demanded.
B. A tabular representation showing the quantities of a good consumers are willing to buy at different prices.
C. A mathematical formula depicting the demand for a specific product.
D. A chart displaying the income elasticity of demand.
Answer: B. A tabular representation showing the quantities of a good consumers are willing to buy at different prices.
Explanation: A demand schedule is a table that lists the quantity of a good that consumers are willing to purchase at various price levels.
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2. Which of the following best describes the demand curve?
Choices:
A. A table summarizing the demand for a product at various price points.
B. A graph illustrating the relationship between price and quantity demanded.
C. A diagram representing the relationship between supply and demand.
D. A chart displaying changes in consumer preferences over time.
Answer: B. A graph illustrating the relationship between price and quantity demanded.
Explanation: The demand curve is a graphical representation that shows how much of a good consumers are willing to buy at different prices, typically sloping downwards.
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3. According to the Law of Demand, what is the typical relationship between price and quantity demanded?
Choices:
A. Directly proportional.
B. Inversely proportional.
C. Unrelated.
D. Fluctuating.
Answer: B. Inversely proportional.
Explanation: The Law of Demand states that as the price of a good increases, the quantity demanded generally decreases, and vice versa, indicating an inverse relationship.
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4. If all else remains constant, what happens to quantity demanded when the price of a good increases?
Choices:
A. It increases.
B. It decreases.
C. It remains the same.
D. It is unpredictable.
Answer: B. It decreases.
Explanation: When the price of a good rises, consumers typically buy less of that good, leading to a decrease in quantity demanded, assuming other factors remain constant.
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5. What is the underlying assumption of the Law of Demand?
Choices:
A. Consumer preferences are constant.
B. Prices always decrease over time.
C. There are no substitutes for the good in question.
D. Demand is perfectly elastic.
Answer: A. Consumer preferences are constant.
Explanation: The Law of Demand assumes that consumer preferences do not change, allowing the relationship between price and quantity demanded to remain consistent.
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6. Which of the following is a graphical representation of the Law of Demand?
Choices:
A. Supply Curve
B. Demand Curve
C. Production Possibility Frontier
D. Lorenz Curve
Answer: B. Demand Curve
Explanation: The demand curve specifically illustrates the Law of Demand, showing how quantity demanded changes in response to price changes.
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7. What is the main purpose of a demand schedule?
Choices:
A. To show the relationship between demand and supply.
B. To illustrate the elasticity of demand.
C. To display the quantities of a good consumers are willing to buy at different prices.
D. To demonstrate the relationship between price and production cost.
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BSED Major in Social Studies 2
Non-FictionThese materials provide lecture notes, quizzes, and resources for BSED Social Studies students, covering key topics such as history, geography, economics, and political science. Marjhon Mascardo shares a personal note, reflecting on his college jour...
