The law of demand states that
A) people demand less at lower prices.
B) the quantity demanded is directly related to price.
C) the quantity demanded is inversely related to price.
D) changes in price and changes in quantity demanded move in the same direction.
Ques. 2Macroeconomics is best defined by which of the following statements?
A) Macroeconomics is the study of how firms attempt to maximize profits.
B) Macroeconomics is the study of the behavior of the economy as a whole.
C) Macroeconomics is the study of individual households.
D) Macroeconomics is the study of how the prices of individual goods are determined.
Ques. 3Scarcity affects
A) only rich people.
B) only poor people.
C) only middle income people.
D) all people.
Ques. 4A fundamental principle in demand analysis is that a change in price leads to
A) a movement along the demand curve.
B) a rightward shift of the demand curve.
C) a leftward shift of the demand curve.
D) a complementary movement on the supply curve.
Ques. 5Scarcity
A) exists in all human societies.
B) is a problem for less-developed nations only.
C) used to be a problem, but is not an issue for modern industrial nations.
D) afflicts greedy people only.
Ques. 6The most basic concept in economics is
A) wealth.
B) income.
C) scarcity.
D) spending.
Ques. 7Refer to the above figure. Which panel demonstrates the law of demand?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
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