demand economy MCQs
demand economy MCQs
Try to answer these demand economy MCQs and check your understanding of the demand economy subject. Scroll down and let's begin!
1: Odd-even pricing is considered to be a __________ approach to pricing.
A. Demand-oriented
B. Cost-oriented
C. Profit-oriented
D. Competition-oriented
2: What is a demand economy?
A. An economy where demand for goods and services determines production and pricing
B. An economy where supply of goods and services determines production and pricing
C. An economy where the government controls all economic activities
D. An economy based on barter and trade
3: What is the law of demand?
A. As price increases, quantity demanded increases
B. As price increases, quantity demanded decreases
C. As price decreases, quantity demanded increases
D. As price decreases, quantity demanded decreases
4: What factors influence demand in a demand economy?
A. Price only
B. Income only
C. Price and income
D. Price, income, and government regulations
5: What is the concept of elasticity of demand?
A. The responsiveness of quantity demanded to changes in price
B. The total quantity of a good or service demanded in the market
C. The relationship between income and quantity demanded
D. The change in demand due to changes in government policies
6: What is the difference between a normal good and an inferior good?
A. Normal goods are luxurious goods, while inferior goods are basic necessities
B. Normal goods have elastic demand, while inferior goods have inelastic demand
C. Normal goods have positive income elasticity of demand, while inferior goods have negative income elasticity of demand
D. Normal goods have high prices, while inferior goods have low prices
7: What is the concept of substitute goods?
A. Goods that are produced by different companies
B. Goods that are used together in consumption
C. Goods that can be used in place of each other
D. Goods that are complementary to each other
8: What is the concept of complementary goods?
A. Goods that are produced by different companies
B. Goods that are used together in consumption
C. Goods that can be used in place of each other
D. Goods that are substitutes for each other
9: How does an increase in income affect demand for normal goods?
A. Demand increases
B. Demand decreases
C. Demand remains unchanged
D. Demand depends on the income elasticity of the good
10: How does an increase in price affect demand for a product with elastic demand?
A. Demand increases
B. Demand decreases
C. Demand remains unchanged
D. Demand depends on the income elasticity of the good
11: What is the concept of consumer surplus in a demand economy?
A. The difference between the price consumers are willing to pay and the actual price they pay
B. The difference between the price producers receive and the actual price paid by consumers
C. The total quantity of a good or service demanded in the market
D. The change in demand due to changes in government policies
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