What is an effect of the division of labor?
Consumers are offered better choices.
Investors pay more to start companies.
Producers work more quickly.
Employees learn how to produce an entire product.
Consumers are offered better choices.
Which is true of how the market sets prices?
(1 point)
Responses
Prices are set by the expected sales.
Prices are set by the expected sales.
Prices are set by how much consumers will pay.
Prices are set by how much consumers will pay.
Prices are set by the size and location of market outlets.
Prices are set by the size and location of market outlets.
Prices are set by doubling the equilibrium price.
Prices are set by how much consumers will pay.
Imagine that the amount of milk being purchased in the United States suddenly decreased.
Question
Which of the following is the most likely cause?
(1 point)
Responses
increased price of milk
increased price of milk
increased supply of milk
increased supply of milk
decreased demand for milk
decreased demand for milk
decreased competition for milk
decreased competition for milk
decreased demand for milk
Imagine your town has a local bike store called Brianna’s Bikes. After years of good business, a larger competing chain store opens up across the street. This new store, David’s Bike Depot, offers specials such as a family pack of helmets for a lower price and free bike tune-ups with a minimum purchase.
Question
Use the passage to answer the question.
Which positive effects would likely result from this new competition? Select all that apply.
(1 point)
Responses
fewer choices
fewer choices
better prices
better prices
higher quality
higher quality
higher wages
better prices
higher quality
Which is the most important function of banks in an economy?
(1 point)
Responses
extending credit
extending credit
guarding savings
guarding savings
providing mutual fund options
providing mutual fund options
managing employee pay systems