Quiz 1

A  increasing personal income taxes

B  increasing interest rates

C  allocating more funds towards defense

D  lowering the corporate tax rate

E  decreasing spend on social programs

A  Price may increase or decrease and quantity sold decreases

B  Price increases and quantity sold increases

C  Price decreases and quantity sold may increase or decrease

D  Price decreases and quantity sold increases

E  Price decreases and quantity sold decreases

A  Price may increase or decrease and quantity sold increases

B  Price increases and quantity sold may increase or decrease

C  Price increases and quantity sold decreases

D  Price decreases and quantity sold increases

E  Price increases and quantity sold increases

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

B  None of these

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

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

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

A  Method 1 – $4,200

B  Method 2 – $5,200

C  Method 3 – $4,300

D  Method 1 – $5,200

E  Method 2 – $4,800

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  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  None of these

A  consumers buy finished products from firms.

B  consumers buy factors of production from firms.

C  firms sell factors of production to consumers.

D  consumers sell factors of production to firms.

E  firms buy factors of production from consumers.

A  making and enforcing laws

B  providing services such as national defense

C  extensive ownership of productive resources

D  collecting taxes

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