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Entrepreneurship — Unit test Answers

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How do changing prices affect supply and demand?

A
As price increases, both supply and demand increase.
B
As price decreases, both supply and demand decrease.
C
As price increases, supply decreases, but demand increases.
D
As price decreases, supply decreases, but demand increases.
2
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Which statement best compares the laws of supply and demand?

A
The two economic laws exist in theory. They have no relation to economics in the real world.
B
The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.
C
The two economic laws work in practice. They apply to real-world economics eighty percent of the time.
D
The two economic laws work in practice. They prove to be true in the real world one hundred percent of the time.
3

Which statement best explains the law of demand?

A
The quantity demanded by consumers increases as prices rise, then decreases as prices fall.
B
The quantity demanded by consumers decreases as prices rise, then increases as prices fall.
C
The quantity demanded by producers increases as prices rise, then decreases as prices fall.
D
The quantity demanded by producers decreases as prices rise, then increases as prices fall.
4

According to the law of supply, price and quantity move

A
along a track in the same direction.
B
along a track in opposite directions.
C
from different points toward one another.
D
from the same point away from one another.
5

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

A
coordination.
B
correspondence.
C
equality.
D
equilibrium.
6

The chart compares the price of graphic T-shirts to the quantity demanded.

Question illustration
A
interest in a product and the price a consumer pays.
B
interest in a product and the price a producer pays.
C
amount of a product and the price a consumer pays.
D
amount of a product and the price a producer pays.
7

The vertical axis of a demand curve shows

A
the price of a product.
B
the supply of a product.
C
the interest in a product.
D
the production cost of a product.
8

According to the law of demand, price and quantity move

A
along a track in the same direction.
B
along a track in opposite directions.
C
from different points toward one another.
D
from the same point away from one another.
9

The amount of goods and services consumers want is called the

A
count.
B
demand.
C
number.
D
supply.
10

On a supply and demand graph, equilibrium is the point where

A
the two curves meet.
B
the supply curve begins.
C
the supply curve ends.
D
the demand curve ends.
11

Look at the graph examining the market for graphic T-shirts.

Question illustration
A
5 graphic T-shirts on sale for $6
B
10 graphic T-shirts on sale for $30
C
30 graphic T-shirts on sale for $10
D
55 graphic T-shirts on sale for $6
12

A market supply schedule shows

A
the products of two companies only.
B
the prices and quantity in an entire market.
C
how prices affect a single producer.
D
how prices affect a group of consumers.
13

The chart compares the price of graphic T-shirts to the quantity demanded.

Question illustration
A
interest in a product and the price a consumer pays.
B
interest in a product and the price a producer pays.
C
amount of a product and the price a consumer pays.
D
amount of a product and the price a producer pays.
14

The amount of goods and services consumers want is called the

A
count.
B
demand.
C
number.
D
supply.
15

The total amount of a product available in a market at a given price is called the

A
count.
B
demand.
C
number.
D
supply.
16

According to the law of supply, price and quantity move

A
along a track in the same direction.
B
along a track in opposite directions.
C
from different points toward one another.
D
from the same point away from one another.
17

A factor that most directly affects the demand for automobiles is

A
the individual tastes and preferences of buyers.
B
the cost of raw materials and natural resources.
C
the availability of workers in automobile factories.
D
a company's ability to respond to buyers' interest.
18

A factor that most directly affects the demand for automobiles is

A
the individual tastes and preferences of buyers.
B
the cost of raw materials and natural resources.
C
the availability of workers in automobile factories.
D
a company's ability to respond to buyers' interest.
19

According to the law of demand, price and quantity move

A
along a track in the same direction.
B
along a track in opposite directions.
C
from different points toward one another.
D
from the same point away from one another.
20

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

A
coordination.
B
correspondence.
C
equality.
D
equilibrium.

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