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Unformatted text preview: ch4 Student: ___________________________________________________________________________ 1. The largest portion of the average U.S. consumer dollar is spent on: A. Food. B. Entertainment. C. Health care. D. Housing. 2. The second largest portion of the average U.S. consumer dollar is spent on: A. Transportation. B. Housing. C. Insurance and pensions. D. Food. 3. Which of the following ranks the top three components of U.S. consumption correctly from largest to smallest? A. Housing, medical care, entertainment. B. Housing, transportation, food. C. Transportation, housing, clothing. D. Transportation, health care, insurance and pensions. 4. Which of the following is true about consumer spending over time? A. Spending habits do not change. B. Spending habits show no consistent pattern. C. Spending habits are likely to change when new products enter the market. D. Spending habits change monthly. 5. Which of the following does not influence consumer demand? A. The consumer's ability to pay. B. The consumer's fears, psychological complexes, and anxieties. C. Ego and status. D. Producer behavior. 6. Sociopsychiatric explanations of consumer behavior include: A. Desire for ego and status. B. Level of income. C. Level of wealth. D. Prices of other goods. 7. The law of demand states that: A. The greater the number of buyers in a marker, the lower the price. B. Price and quantity demanded are directly related. C. The lower the cost the lower the price. D. Price and quantity demanded are inversely related. 8. Which of the following is true about American spending habits? A. Women spend more than men on alcohol and smoking. B. Young men spend more than young women on clothing and personal-care items. C. Teenagers spend their money on electronics, cars and clothes. D. Young women are likely to go into debt because of their spending but not young men. 9. Demand is defined as the: A. Desire for goods and services. B. Ability and willingness to sell goods at various prices. C. Ability and willingness to buy specific quantities of a good or service at various prices in a given time period, ceteris paribus. D. Sensitivity of buyers to a change in price. 10. If an individual demands a particular good, it means that he or she: A. Is willing and able to purchase the good at some price. B. Has a strong desire for the good. C. Must need the good. D. Prefers the good over all other choices. 11. Which of the following is true about demand? A. Demand reflects the desire for a good but not necessarily the ability to buy it. B. In order to demand a good, a person must be willing and able to buy the good. C. When drawing a demand curve, influences such as price do not change. D. Demand reflects the ability to buy a good but not necessarily the desire to do so....
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- Fall '11
- Supply And Demand, AACSB