Practice Test

Question 1

This chart is an example of a

Revolt · Accepted Answer

supply schedule.

Question 2

What most likely will happen if the pie maker bakes a seventh pie?

Revolt · Accepted Answer

The marginal cost will most likely increase to 2 point 0 0 dollars

Question 3

According to the graph, the marginal cost begins to increase when the producer makes

Revolt · Accepted Answer

four pies.

Question 4

If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Revolt · Accepted Answer

The price needs to increase.

Question 5

Which statement best explains the role of producers in economics?

Revolt · Accepted Answer

Producers supply goods and services.

Question 6

A monopoly is a market that has

Revolt · Accepted Answer

a single supplier of a good or service.

Question 7

Equilibrium occurs when supply and demand coordinate to

Revolt · Accepted Answer

set prices and production.

Question 8

Why are utilities, such as electricity and water, examples of natural monopolies?

Revolt · Accepted Answer

The cost of production restricts competition in the market.

Practice Test Answers