Bot, answer these 5 questions.
1. Customers cannot purchase every product. How does this fact affect companies that make products?
A. They increase costs to make up for low sales.
B. They decrease quality to make up for low sales.
C. They provide better value so that customers choose their products.
D. They provide fewer options so that customers choose their products.
2. Which of the following is a cost of production? Select 2 answers.
A. improving processes.
B. buying raw materials.
C. spending time working.
D. paying property taxes.
E. choosing the best products.
3.
|Three Basic Economics Questions|
|What to produce?|
|How to produce it?|
|??|
What is the third Basic Economics Question?
A. How much to produce?
B. For whom to produce?
C. Where to produce?
D. What natural resources are used to produce?
4. Which of the following economic actions demonstrates a negative incentive?
A. An employee is fired.
B. An item is put on sale.
C. The costs of production decrease.
D. The board of a company invests more.
5. Which government action would interfere with free trade?
A. increasing taxes on domestic producers.
B. charging duty taxes on foreign goods.
C. adding a value-added tax to consumer goods.
D. giving contracts to factories in other countries.
1. C. They provide better value so that customers choose their products.
2. B. buying raw materials.
D. paying property taxes.
3. B. For whom to produce?
4. A. An employee is fired.
5. B. charging duty taxes on foreign goods.
Bot, answer these 5 questions.
1. What is an effect of the division of labor?
A. Consumers are offered better choices.
B. Investors pay more to start companies.
C. Producers work more quickly.
D. Employees learn how to produce an entire product.
2. Which is true of how the market sets prices?
A. Prices are set by the expected sales.
B. Prices are set by how much consumers will pay.
C. Prices are set by the size and location of market outlets.
D. Prices are set by doubling the equilibrium price.
3. Imagine that the amount of milk being purchased in the United States suddenly decreased.
Which of the following is the most likely cause?
A. increased price of milk.
B. increased supply of milk.
C. decreased demand for milk.
D. decreased competition for milk.
4. 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.
Use the passage to answer the question.
Which positive effects would likely result from this new competition? Select all that apply.
A. fewer choices
B. better prices
C. higher quality
D. higher wages
5. Which is the most important function of banks in an economy?
A. extending credit.
B. guarding savings.
C. providing mutual fund options.
D. managing employee pay systems.
1. C. Producers work more quickly.
2. B. Prices are set by how much consumers will pay.
3. C. decreased demand for milk.
4. B. better prices
C. higher quality
5. A. extending credit.
1. The correct answer is C. They provide better value so that customers choose their products.
Companies that make products need to consider that customers cannot purchase every product. This fact affects their business strategy and requires them to provide better value to attract customers. By offering products that are superior in quality, features, or price compared to their competitors, companies can increase their chances of being chosen by customers.
2. The correct answers are B. buying raw materials. and D. paying property taxes.
Costs of production refer to the expenses incurred by companies in the process of manufacturing goods or providing services. Examples of costs of production include purchasing raw materials required for production, paying wages to employees, operating expenses, and paying property taxes on manufacturing facilities or office spaces.
3. The third basic economics question is B. For whom to produce?
The three basic economic questions are:
1. What to produce?
2. How to produce it?
3. For whom to produce?
The first question addresses the choice of which goods and services are produced. The second question concerns the most efficient methods of production. And the third question focuses on the distribution of goods and services to determine who benefits from them.
4. The correct answer is A. An employee is fired.
A negative incentive refers to a consequence or action that discourages a certain behavior. In this case, firing an employee serves as a negative incentive as it discourages other employees from engaging in similar behaviors or actions that led to the termination. Negative incentives are often used to deter unwanted behaviors or enforce compliance.
5. The correct answer is B. charging duty taxes on foreign goods.
Free trade refers to the absence of barriers and restrictions in international commerce. A government action that interferes with free trade would involve implementing policies or measures that hinder the flow of goods and services across borders. Charging duty taxes on foreign goods is an example of such interference as it increases the cost of imported goods and creates a disadvantage for foreign producers, reducing the level of free trade.