1. Directions

You will read passages on the topic and then answer questions about them. You may find vocabulary at the end of the test. Read the questions carefully before choosing the correct answers.

2. Questions of the test

Question 1. What is consumer behavior?
A) The decisions and actions taken by individuals and households when purchasing goods and services
B) The production and distribution of goods and services in the economy
C) The satisfaction or pleasure that a consumer derives from a good or service
D) The responsiveness of consumer demand to changes in price

Question 2. What is an example of a personal characteristic that can influence consumer behavior?
A) The level of employment
B) The price of goods and services
C) Age
D) The availability of goods and services

Question 3. What is utility?
A) The satisfaction or pleasure that a consumer derives from a good or service
B) The responsiveness of consumer demand to changes in price
C) The decisions and actions taken by individuals and households when purchasing goods and services
D) The production and distribution of goods and services in the economy

Question 4. What is consumer elasticity?
A) The responsiveness of consumer demand to changes in price
B) The satisfaction or pleasure that a consumer derives from a good or service
C) The decisions and actions taken by individuals and households when purchasing goods and services
D) The production and distribution of goods and services in the economy

Question 5. How is understanding consumer behavior important for businesses?
A) It allows them to better understand and predict what consumers will buy
B) It helps inform policy decisions related to consumer protection and regulation
C) It allows them to tailor their marketing and pricing strategies accordingly
D) All of the above