Quiz 1

A  lowering the corporate tax rate

B  allocating more funds towards defense

C  increasing personal income taxes

D  decreasing spend on social programs

E  increasing interest rates

A  Price may increase or decrease and quantity sold decreases

B  Price decreases and quantity sold decreases

C  Price increases and quantity sold increases

D  Price decreases and quantity sold increases

E  Price decreases and quantity sold may increase or decrease

A  Price increases and quantity sold decreases

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 increases

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

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

C  The cost of gas increases.

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

E  None of these

A  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.

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

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

D  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.

A  consumers sell factors of production to firms.

B  firms sell factors of production to consumers.

C  consumers buy factors of production from firms.

D  firms buy factors of production from consumers.

E  consumers buy finished products from firms.

A  collecting taxes

B  extensive ownership of productive resources

C  providing services such as national defense

D  making and enforcing laws

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