AnswersMNPS Economics FTC 25-26Unit Test

Unit Test — Unit test Answers

14 verified answers
1
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Motherboards, Inc., manufactures computer parts. The company’s total revenue is

t
the money the company earns after paying all of its production costs.
t
the total wages the company pays workers in its factories and stores.
t
the amount of money the company earns from selling an individual part.
t
the amount the company receives from the sale of all of its computer parts.
2
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best

e
efficient
f
fast
a
accurate
p
prolific
3

Both a demand curve and a demand schedule show how

A
prices affect consumer demand.
B
consumer demand affects income.
C
prices affect complementary goods.
D
consumer demand affects substitute goods.
4

Producers hoping to earn profits supply goods and services to

A
debtors.
B
themselves.
C
competitors.
D
consumers.
5

What does elasticity measure in economics?

h
how the amount of a good changes when the producer hires more employees
h
how the amount of a good changes when the producer uses new materials
h
how the amount of a good changes when its price goes up or down
h
how the amount of a good changes when its distribution expands
6

Two doctors who join forces in business form a.

Answer not available
7

In which way do producers try to differentiate themselves in monopolistic competition?

p
price
a
advertising
p
product features
i
image
8

What does elasticity measure in economics?

A
how the amount of a good changes when the producer hires more employees
B
how the amount of a good changes when the producer uses new materials
C
how the amount of a good changes when its price goes up or down
D
how the amount of a good changes when its distribution expands
9

increasesdecreasesstays the same

A
increases
B
decreases
C
stays the same
10

A chart that shows the connection between consumer demand and price is a

A
market schedule.
B
market curve.
C
demand curve.
D
demand schedule.
11

Which is likely to occur if there is a price increase for a good which exhibits elastic demand?

A
People might buy a more expensive substitute good.
B
People might buy a less expensive complementary good.
C
People might buy a less expensive substitute good.
D
People might buy a more expensive complementary good.
12

A monopoly is a market that has

A
few competing businesses.
B
many sellers of the same item.
C
many sellers of a variety of products.
D
a single supplier of a good or service.
13

The highest amount a landlord can charge for rent is an example of

a
an incentive.
a
a price floor.
a
a price ceiling.
a
an elastic service.
14

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

A
The cost of production restricts competition in the market.
B
There are limited natural resources to meet demand.
C
Consumers only trust known companies to provide these essentials.
D
There is no need for alternative options.
15

A possible result of disequilibrium is

e
excess demand.
l
lower demand.
f
fixed prices.
s
stable availability.

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