AnswersMNPS Economics FTC 25-26Unit Test

Economic Growth Answers

25 verified answers
1
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In order to compete successfully, a producer must produce goods that are

A
more expensive than those of competitors.
B
of a lesser quality than those of competitors.
C
of a higher quality than those of competitors.
D
created without worrying about the costs of production.
2
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Franchising is typically done by

A
cooperatives.
B
partnerships.
C
LLC
D
corporations.
3

This graph shows a supply curve.What happens when the price of a good increases?

Question illustration
A
The quantity of goods that are produced increases.
B
The producer of the good is certain to make less money.
C
The quantity of goods that are produced decreases.
D
The quantity of goods that are produced stays about the same.
4

How do corporations raise money and resources to expand? Select THREE answers.They request a bank loan.They raise franchise fees.They cash in dividends.They agree to sell stocks.They issue bonds.

T
They request a bank loan.
T
They raise franchise fees.
T
They cash in dividends.
T
They agree to sell stocks.
T
They issue bonds.
5

Which best describes how producers benefit from specialization?

A
Producers can increase their profits.
B
Producers can expand their market.
C
Producers can offer a wider range of goods.
D
Producers can increase sales.
6

The main advantage that corporations have is

A
limiting liability for owners and stockholders.
B
giving many owners a say in business decisions.
C
being inexpensive and easy to establish.
D
requiring fewer state and federal regulations.
7

higherlowermultiple

A
higher
B
lower
C
multiple
8

The chart shows a combined supply and demand schedule.

Question illustration
A
The cost to make a pair of shoes will rise.
B
A scarcity of shoes will result.
C
Profits from selling shoes will increase.
D
Consumers will want to buy fewer pairs of shoes.
9

Which best describes how the government enables government monopolies to exist?

A
by issuing a patent
B
by allowing natural monopolies to exist
C
by creating and running a monopoly
D
by owning the means of production
10

The law of supply demonstrates the behaviors of producers when they

A
change their company’s name.
B
decide to hire fewer workers.
C
supply goods to consumers.
D
launch a new marketing campaign.
11

The law of supply states that as the price of a good rises, the quantity supplied of that good

A
disappears.
B
decreases.
C
remains the same.
D
increases.
12

Which best describes what happens to the amount of a good or service that is supplied to consumers?

A
The amount of a good or service can change.
B
The amount of a good or service always remains the same.
C
The amount of a good cannot change.
D
The amount of a service cannot change.
13

Which helps enable an oligopoly to form within a market?

A
Costs of starting a competing business are too high.
B
The government restricts market entry.
C
The number of options in a market confuses consumers.
D
No competition exists between producers.
14

best

I
Incentives are mostly positive.
I
Incentives are mostly negative.
I
Incentives can be positive or negative.
I
Incentives are neither positive nor negative.
15

In the market, actions known as incentives affect

p
producers only.
c
consumers only.
c
consumers or producers.
n
neither consumers nor producers.
16

Which statement best explains how elasticity and incentives work together?

A
An elastic good, such as a game, is more likely to respond to incentives.
B
An inelastic good, such as a game, is more likely to respond to incentives.
C
An elastic good, such as a game, is less likely to respond to incentives.
D
An inelastic good, such as a game, is less likely to respond to incentives.
17

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

e
excess supply
s
stable prices
e
exact equilibrium
i
increased production
18

According to the law of demand, as prices decrease, the quantity demanded

A
decreases.
B
increases.
C
stays the same.
D
disappears.
19

demandsupplyquantityproduction

A
demand
B
supply
C
quantity
D
production
20

Which explains the connection between the law of demand and excess demand?

A
The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.
B
The law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand.
C
The law states that decreases in price leads to greater supply and equilibrium, which occurs during excess demand.
D
The law states that increases in price leads to greater supply and equilibrium, which occurs during excess demand.

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