Name: ___________________________ Section & Course: ___________Date: ____________ Score: ______________

Test I. IDENTIFICATION. Provide the correct answers in the blank.

Elasticity 1. The responsiveness of demand/ supply to a change in its determinants.

Theory of
diminishing 2. The cornerstone of the concept of income elasticity of demand.
marginal utility
Engel curve 3. The curve depicting the quantities of a good the consumer is willing to buy at all income levels, assuming all
other things remain the same.

Ernest Engel 4. He made a study of income elasticity for food and the finding of his study are depicted in what is now
accepted as Engel’s Law.
Price elasticity
of demand 5. The degree of responsiveness of quantity demanded to a change in price.

Total revenue 6. The price of an item multiplied by the number of units of that item sold.

Normal goods 7. Goods for which demand tends to increase when income increases.

Arc elasticity 8. The coefficient of the price elasticity of demand between two points along the demand curve.

Point elasticity 9. The elasticity at one point along the demand curve.
Maslow’s Hierarchy
of needs 10. This consists the biological needs, safety needs, social needs, esteem needs, and self-actualization needs.

Utility 11. The technical terms for satisfaction.

Total utility 12. The total amount of satisfaction derived consuming foods and services.

Marginal utility 13. The additional satisfaction derived from consumption of additional goods and services.

Perception 14. Is defined as the process by which an individual selects, organizes and interprets information to create
meaningful picture of the world.

Prices 15. Can change to make goods relatively cheap or costly.

Income effect 16. The potential increase in the consumption of both commodities.
Reference
Groups 17. Are those groups that have a direct or indirect influence on person’s attitudes or behaviors.
Abraham
Maslow 18. He created the Maslow’s Hierarchy of Needs.

Convergence 19. Often referred to as “catch-up effect” in economics.

Complementary
goods 20. Goods that supplement each other and are used together.

Test II. ENUMARATION.

1-4 Factors influencing buyer’s behavior. (Cultural, Social, Personal, Psychological)

5-7 Social Factors (Family, Social roles, Status)
8-12 Personal Factors (Age and life cycle stage, Occupation, Economic circumstances, Lifestyle, Personality and self- concept)
13-16 Psychological Factors (Motivation, perception, learning, beliefs and attitude)
17-19 Cultural Factors (Culture, Subculture, Social class)
20-24 Maslow’s Hierarchy of Needs (Biological needs, safety needs, social needs, esteem needs, self-actualization needs)
25- 30 Give at least (6) Safety Needs (protection, security, order, law, limits, stability)