Quiz 1

A  increasing personal income taxes

B  decreasing spend on social programs

C  allocating more funds towards defense

D  increasing interest rates

E  lowering the corporate tax rate

A  Price decreases and quantity sold decreases

B  Price decreases and quantity sold may increase or decrease

C  Price may increase or decrease and quantity sold decreases

D  Price decreases and quantity sold increases

E  Price increases and quantity sold increases

A  Price increases and quantity sold increases

B  Price decreases and quantity sold increases

C  Price may increase or decrease and quantity sold increases

D  Price increases and quantity sold may increase or decrease

E  Price increases and quantity sold decreases

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

B  None of these

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

D  The cost of gas increases.

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

A  Entrepreneurs bear risk and must share the rewards with their employees.

B  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.

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. Entrepreneurs bear risk and have financial incentives to make prudent business decisions.

A  consumers sell factors of production to firms.

B  consumers buy finished products from firms.

C  consumers buy factors of production from firms.

D  firms sell factors of production to consumers.

E  firms buy factors of production from consumers.

A  extensive ownership of productive resources

B  collecting taxes

C  making and enforcing laws

D  providing services such as national defense

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