Unit 2 Test Answers

Which is an example of a negative incentive for producers?

Which statement best explains the law of demand?

Which is an example of a positive incentive for consumers?

best

Which calculation helps determine which producer has the absolute advantage?

The graph shows the price of a good compared to the quantity demanded and the quantity supplied.On this graph, what does the green arrow represent?

True or False? Higher opportunity costs equal a greater comparative advantage.

How might a drop in price for washing machines affect the demand for dryers?

1.00.50.251.25

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of

Price controls on goods can be set by

Which is the best measurement to use to determine who might have the absolute advantage?

The amount of goods and services consumers want is called the

The point of maximum profit is the point at which the marginal cost equals the

The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profit? Check all that apply.an increase in the cost of farm equipmenta rise in demand for organic producean increase in customers at the marketa change in the market price for non-organic fruita sale on organic meats at the market

In the market, actions known as incentives affect

The lowest amount a manufacturer can pay factory workers is an example of

Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total profit the company earns after selling 100 boards?

The market for which item generally involves pure competition?

The graph examines the market for graphic T-shirts.