Economics Unit 2 Test Quiz with Correct
& Accurate Answers
1. Demand - ANS ✔the desire to own something and the ability to pay for it
2. Law of demand - ANS ✔consumers will buy more of a good when its price
is lower and less when price is higher
3. Substitution effect - ANS ✔when consumers react to an increase in a
good's price by consuming less of that good and more of a substitute good
4. Income effect - ANS ✔the change in consumption that results when a price
increase causes real income to decline
5. Demand schedule - ANS ✔a table that lists the quantity of a good a person
will buy at various prices in a market
6. Market demand schedule - ANS ✔a tale that lists the quantity of a good all
consumers in a market will buy at various prices
, 7. Demand curve - ANS ✔a graphic representation of a demand schedule
8. Ceteris paribus - ANS ✔all other things held constant
9. Normal good - ANS ✔a good that consumers demand more of when their
income increases
10.Inferior good - ANS ✔a good that consumers demand less of when their
income increase
11.Demographics - ANS ✔the statistical characteristics of populations and
population segments, especially when used to identify consumer markets
12.Complements - ANS ✔two goods that are bought to be used together
13.Substitutes - ANS ✔goods that are bought in place of one another
14.Elasticity of demand - ANS ✔a measure of how consumers respond to
price changes
& Accurate Answers
1. Demand - ANS ✔the desire to own something and the ability to pay for it
2. Law of demand - ANS ✔consumers will buy more of a good when its price
is lower and less when price is higher
3. Substitution effect - ANS ✔when consumers react to an increase in a
good's price by consuming less of that good and more of a substitute good
4. Income effect - ANS ✔the change in consumption that results when a price
increase causes real income to decline
5. Demand schedule - ANS ✔a table that lists the quantity of a good a person
will buy at various prices in a market
6. Market demand schedule - ANS ✔a tale that lists the quantity of a good all
consumers in a market will buy at various prices
, 7. Demand curve - ANS ✔a graphic representation of a demand schedule
8. Ceteris paribus - ANS ✔all other things held constant
9. Normal good - ANS ✔a good that consumers demand more of when their
income increases
10.Inferior good - ANS ✔a good that consumers demand less of when their
income increase
11.Demographics - ANS ✔the statistical characteristics of populations and
population segments, especially when used to identify consumer markets
12.Complements - ANS ✔two goods that are bought to be used together
13.Substitutes - ANS ✔goods that are bought in place of one another
14.Elasticity of demand - ANS ✔a measure of how consumers respond to
price changes
