Quiz 1

A  allocating more funds towards defense

B  increasing personal income taxes

C  increasing interest rates

D  lowering the corporate tax rate

E  decreasing spend on social programs

A  Price decreases and quantity sold may increase or decrease

B  Price decreases and quantity sold decreases

C  Price may increase or decrease and quantity sold decreases

D  Price increases and quantity sold increases

E  Price decreases and quantity sold increases

A  Price increases and quantity sold may increase or decrease

B  Price decreases and quantity sold increases

C  Price may increase or decrease and quantity sold increases

D  Price increases and quantity sold increases

E  Price increases and quantity sold decreases

A  The cost of aluminum used in the production of bicycles increases.

B  The cost of gas increases driving up the cost of driving..

C  The government imposes a tax on bicycle producers for each bicycle sold.

D  The cost of rubber used in the production of bicycles falls.

E  None of these

A  Method 1 – $5,200

B  Method 2 – $4,800

C  Method 1 – $4,200

D  Method 3 – $4,300

E  Method 2 – $5,200

A  Entrepreneurs bear risk and must share the rewards with their employees.
Entrepreneurs bear risk and have financial incentives to make prudent business decisions.

B  None of these

C  Entrepreneurs bear risk and have financial incentives to make prudent business decisions.
Employees are shielded from risk and are not personally liable for business success or failure.

D  Entrepreneurs bear risk and must share the rewards with their employees.
Employees are shielded from risk and are not personally liable for business success or failure.

A  consumers buy finished products from firms.

B  consumers sell factors of production to firms.

C  firms buy factors of production from consumers.

D  firms sell factors of production to consumers.

E  consumers buy factors of production from firms.

A  making and enforcing laws

B  providing services such as national defense

C  collecting taxes

D  extensive ownership of productive resources

E  a government in a market economy does none of the above