AnswersPersonal Finance - EL3403Case Study: Starting a Business

Case Study: Starting a Business — Unit test Answers

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101
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According to the law of demand, price and quantity move

A
along a track in the same direction.
B
along a track in opposite directions.
C
from different points toward one another.
D
from the same point away from one another.
102
Free Preview

According to the law of demand, price and quantity move

A
along a track in the same direction.
B
along a track in opposite directions.
C
from different points toward one another.
D
from the same point away from one another.
103

A wealth gap is an economic difference between

A
nations.
B
economic classes.
C
businesses.
D
governments.
104

[BLANK]

A
total revenue
B
marginal revenue
C
marginal cost
D
total units produced
105

Price controls on goods can be set by

A
consumers.
B
economists.
C
governments.
D
producers.
106

Every economic decision has

A
only positive benefits.
B
gained opportunities.
C
unavoidable limitations.
D
a consequence or tradeoff.
107

Ivan works for an automobile factory that exports cars around the world. The government manages the factory, and he lives in housing provided by the city. Ivan most likely lives in

A
a closed economy with limited government regulation.
B
a pure market economy with no government regulation.
C
a command economy with heavy government regulation.
D
a mixed market economy with some government regulation.
108

The goal of a command economy is to

A
sustain self-sufficiency.
B
preserve traditional customs.
C
create equality within a society.
D
promote free economic choices.
109

The chart shows the revenue from selling soccer nets for Sabrina’s Soccer. How much profit does the company make from producing and selling four soccer nets?

Question illustration
A
$51
B
$80
C
$109
D
$137
110

Goods that are considered to be needs tend to be

A
elastic when the price changes.
B
inelastic when the price changes.
C
elastic when the supply changes.
D
inelastic when the supply changes.
111

Which statement best explains the law of supply?

A
The quantity supplied by producers increases as prices rise and decreases as prices fall.
B
The quantity supplied by producers decreases as prices rise and increases as prices fall.
C
The quantity supplied by consumers increases as prices rise and decreases as prices fall.
D
The quantity supplied by consumers decreases as prices rise and increases as prices fall.
112

An entrepreneur would most likely be a

A
low risk taker.
B
spontaneous person with an unclear vision.
C
person who works well alone.
D
person who has a brief work week.
113

Standard of living is the level at which

A
producers sell certain goods.
B
consumers buy certain goods.
C
producers make desired goods.
D
consumers enjoy desired goods.
114

What restriction would the government impose in a closed economy?

A
The government would prohibit trade with other nations.
B
The government would set the prices for imported goods.
C
The government would preserve traditional customs only.
D
The government would prevent private ownership of property.
115

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 revenue the company makes after selling 10 boards?

A
$300
B
$350
C
$400
D
$450
116

Which factor most directly affects a furniture company's supply?

A
the growing number of furniture buyers in the market
B
the availability of raw materials and natural resources
C
a change in the price of rugs and other complementary goods
D
an increased interest in antique furniture over modern furniture
117

Price controls on goods can be set by

A
consumers.
B
economists.
C
governments.
D
producers.
118

The total amount of a product available in a market at a given price is called the

A
count.
B
demand.
C
number.
D
supply.
119

On this graph, what does the green arrow represent?

Question illustration
A
an ineffective price floor set above equilibrium causing a surplus.
B
an effective price floor set below equilibrium causing a shortage.
C
an ineffective price ceiling set above equilibrium causing a surplus.
D
an effective price ceiling set below equilibrium causing a shortage.
120

The graph examines the market for graphic T-shirts.

Question illustration
A
A product becomes less popular and fewer customers purchase it.
B
A product becomes more popular and more customers purchase it.
C
A product sells out of stores and customers can no longer purchase it.
D
A product is restocked on store shelves and is ready for customer purchase.

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