econ exam review 2
diminishing marginal utility refers to the fact that
additional satisfaction declines as additional units of an item are consumed
"Introducing the 220-hp MAZDA6 Remember adrenaline? Goosebumps? Genuine exhilaration? You will when you drive the MAZDA6. It's a genuine, purely exhilarating sports sudan. As you fire up the 220-horsepower engine, then shift through its 5-speed close-radio gearbox, those old familiar feelings start to return. And by the time the sport-tuned double-wishbone front suspension carries you seamlessly through the first hairpin, it's as if they never left. The 220-hp MAZDA6. Drive it. You'll know." This advertisement is intended to appeal to consumers' sense of
adventure
which one is a durable good a. shirt b. car c. pen d. movie ticket
car
the Federal Deposit Insurance Corporation (FDIC) insures
commercial bank accounts
interest is the
cost of credit expressed monthly in dollars and cents
"We are a full-service financial institution providing a wide variety of financial products and services... We have been serving communications employees and their families for 65 years... Our philosophy is...'people helping people.' For information about your company's eligibility to offer...membership to employees, call us." This passage comes from what type of financial institution?
credit union
a financial institution that is owned and operated by members to provide savings accounts and low interest loans is a
credit union
consumers can transfer money electronically from their bank accounts to the bank accounts of stores or restaurants by using
debit cards
demand for one particular brand of coffee is probably
elastic
according to the law of demand, when the price of an item goes up the quantity demanded
falls
if the price of an item rises, quantity demanded usually
falls
a debit card is a type of credit card
false
according to the law of demand, quantity and price move in the same direction
false
durable goods are defined as good that last more than 10 years
false
when people's income goes up, they usually consume less of a good or service
false
every purchase decision involves the use of two scarce resources
income and time
the principle that states that the more you have of something, the less satisfaction you will get from an additional unit is the
law of diminishing marginal utility
generally, the more substitutes there are for a good, the
more elastic the demand
the quantity demanded of a product is affected by
price
according to the law of supply, higher prices prompt producers to
produce more
when the price of a good is too high for consumers, they look for
substitutes
if the price of a product is above its equilibrium price, the result is a
surplus
demand
the movement shown in this graph represents a change in what?
according to the law of supply, producers are willing to supply more when the price of a good or service goes up
true
account holders can write checks on money market accounts
true
the substitution effect can decrease the quantity demanded of a good
true
which of the following is an example of a durable good a. washing machine b. hairbrush c. blouse d. gasoline
washing machne
an increase in population
which of the following choices could cause the movement shown in the graph a. decrease in income b. increase in population c. increase in price of substitute d. decrease in price of compliment
decrease in income
which of the following choices could cause the movement shown in the graph? a. decrease in income b. increase in population c. increase in price of substitute d. decrease in price of compliment