Entrepreneurship — Unit test Answers

25 verified answers

What is one way for an entrepreneur to decrease risk?

by mimicking popular products

by maintaining personal flexibility

by creating a strong business strategy

by developing reliable sources for materials

According to the law of supply, price and quantity move

along a track in the same direction.

along a track in opposite directions.

from different points toward one another.

from the same point away from one another.

How can the government reduce the wealth gap in a mixed market economy?

The government can control income levels by placing limits on how much citizens can earn.

The government can eliminate minimum wages for workers to account for economic differences.

The government can improve education to provide new opportunities for workers in the lower class.

The government can tax members of the wealthy class at a lower rate to address differences in income.

How do changing prices affect supply and demand?

As price increases, both supply and demand increase.

As price decreases, both supply and demand decrease.

As price increases, supply decreases, but demand increases.

As price decreases, supply decreases, but demand increases.

Every economic decision has

only positive benefits.

gained opportunities.

unavoidable limitations.

a consequence or tradeoff.

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