Case Study: Starting a Business — Unit test Answers

The graph shows a production possibilities curve for Sabrina’s Soccer. At which two points will Sabrina’s Soccer produce the most equal amounts of soccer balls and soccer nets?

Which statement best describes a mixed market economy?

Which individual is acting most like a consumer?

How do lower prices tend to affect demand?

Which is an example of a negative incentive for producers?

Which factor should be most important if you are considering purchasing a new video game?

What is one purpose of writing a business plan before entering the market?

The graph shows the marginal cost of producing soccer cleats for Sabrina’s Soccer. At which level of production does the company make the least profit?

Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises by 10%, and the quantity demanded falls by 20%.The fact that quantity demanded changed by more than the price change suggests that

In a mixed market economy, property owned by the government

The point where supply and demand meet and prices are set is called

How can producers maximize their profit? Check all that apply.

The graph shows a production possibilities curve for Sabrina’s Soccer. At which point on the graph are resources not used efficiently?

South Avenue Publishing produces self-help books. The company’s profit is the

Which action would most likely help a producer maximize profit?

Becoming informed about economics helps a person understand the

What must an entrepreneur do after creating a business plan?

Gabriela owns a company that makes silk scarves. She buys the silk from an overseas supplier and is subject to a tax on imported goods. Gabriela most likely lives in

The goal of a market economy is to

Which best describes the role of a consumer?