Customers cannot purchase every product. How does this fact affect companies that make products?
(1 point)
Responses
They increase costs to make up for low sales.
They increase costs to make up for low sales.
They decrease quality to make up for low sales.
They decrease quality to make up for low sales.
They provide better value so that customers choose their products.
They provide better value so that customers choose their products.
They provide fewer options so that customers choose their products.
They provide better value so that customers choose their products.
Which of the following is a cost of production? Select all that apply.
(1 point)
Responses
improving processes
improving processes
buying raw materials
buying raw materials
spending time working
spending time working
paying property taxes
paying property taxes
choosing the best products
buying raw materials
spending time working
paying property taxes
Three Basic Economics Questions
What to produce?
How to produce it?
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Question
What is the third Basic Economics Question?
(1 point)
Responses
How much to produce?
How much to produce?
For whom to produce?
For whom to produce?
Where to produce?
Where to produce?
What natural resources are used to produce?
For whom to produce?
Which of the following economic actions demonstrates a negative incentive?
(1 point)
Responses
An employee is fired.
An employee is fired.
An item is put on sale.
An item is put on sale.
The costs of production decrease.
The costs of production decrease.
The board of a company invests more.
The board of a company invests more.
An employee is fired.
Which government action would interfere with free trade?
(1 point)
Responses
increasing taxes on domestic producers
increasing taxes on domestic producers
charging duty taxes on foreign goods
charging duty taxes on foreign goods
adding a value-added tax to consumer goods
adding a value-added tax to consumer goods
giving contracts to factories in other countries
giving contracts to factories in other countries
increasing taxes on domestic producers
What is an effect of the division of labor?
(1 point)
Responses
Consumers are offered better choices.
Consumers are offered better choices.
Investors pay more to start companies.
Investors pay more to start companies.
Producers work more quickly.
Producers work more quickly.
Employees learn how to produce an entire product.