Answers2102320-Economics HONORS - Edgenuity TeacherCase Study: Starting a Business

Case Study: Starting a Business — Unit test Answers

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1
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The highest amount a landlord can charge for rent is an example of

a
an incentive.
a
a price floor.
a
a price ceiling.
a
an elastic service.
2
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Which statements correctly explain price floors and price ceilings? Choose four answers.Ineffective price floors tend to be too high.Ineffective price ceilings tend to be too low.Price floors help producers by raising prices.Price ceilings help consumers by lowering prices.Effective price floors are set above equilibrium.Effective price ceilings are set below equilibrium.

I
Ineffective price floors tend to be too high.
I
Ineffective price ceilings tend to be too low.
P
Price floors help producers by raising prices.
P
Price ceilings help consumers by lowering prices.
E
Effective price floors are set above equilibrium.
E
Effective price ceilings are set below equilibrium.
3

The government has the right to own all land, buildings, and factories in a

A
closed economy.
B
command economy.
C
mixed market economy.
D
pure market economy.
4

similardifferentallrandom

A
similar
B
different
C
all
D
random
5

What role do government agencies play in a mixed market economy?

T
They run shipping companies and other sources of distribution.
T
They own farms, factories, and other sources of production.
T
They regulate some aspects of production and distribution.
T
They employ most of the workers in the economic system.
6

What are the cons of a mixed market economy for most citizens? Select four answers.There may be a sizable gap between rich and poor people.It can be very difficult for citizens to start private businesses.Citizens must pay for most basic necessities by themselves.There is no guarantee of steady employment for many citizens.Citizens may pay higher taxes than in other economic systems.Citizens often purchase their own health care and higher education.

T
There may be a sizable gap between rich and poor people.
I
It can be very difficult for citizens to start private businesses.
C
Citizens must pay for most basic necessities by themselves.
T
There is no guarantee of steady employment for many citizens.
C
Citizens may pay higher taxes than in other economic systems.
C
Citizens often purchase their own health care and higher education.
7

In a republic, elected officials create laws to regulate the economy.

T
T
F
F
8

The development of many new businesses helps limit

u
unemployment.
t
taxation.
r
revenue.
r
risk.
11

Which scenario is an example of market saturation?

A
The single coffee shop in town usually has a long line of customers and tends to stay busy during business hours.
B
There are three shoe stores on one block in town, and they have trouble finding customers and making a profit.
C
A second health club will open because the only health club in town is too crowded to accept new customers.
D
It can be difficult to get reservations at the only upscale Ethiopian restaurant in town, and it is best to call in advance.
13

The graph is a marginal cost curve that compares expenses for producing apple pies.According to the graph, the marginal cost begins to increase when the producer makes

Question illustration
t
two pies.
t
three pies.
f
four pies.
f
five pies.
14

What does elasticity measure in economics?

h
how the amount of a good changes when the producer hires more employees
h
how the amount of a good changes when the producer uses new materials
h
how the amount of a good changes when its price goes up or down
h
how the amount of a good changes when its distribution expands
15

most likely

t
the private business that operates the farm.
t
the government group that runs the farm.
t
the individual who manages the farm.
t
the family who owns the farm.
16

most likely

Question illustration
T
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
T
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
T
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
T
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
17

Which statement best explains the role of producers in economics?

A
Producers supply goods and services.
B
Producers purchase goods and services.
C
Producers create theories about the market.
D
Producers sell shares for companies in the market.
18

What are some benefits to private ownership? Select three answers.Private ownership provides offices for government workers.Private ownership provides land or goods for all citizens to use.Private ownership can make it possible for a business to earn money.Private ownership might help a person move to another economic class.Private ownership allows a person to own goods that may increase in value.

P
Private ownership provides offices for government workers.
P
Private ownership provides land or goods for all citizens to use.
P
Private ownership can make it possible for a business to earn money.
P
Private ownership might help a person move to another economic class.
P
Private ownership allows a person to own goods that may increase in value.
19

most likely

T
The store owner would most likely raise the price of the spring jeans to encourage producers.
T
The store owner would most likely lower the price of the spring jeans to encourage producers.
T
The store owner would most likely raise the price of the spring jeans to encourage consumers.
T
The store owner would most likely lower the price of the spring jeans to encourage consumers.
20

What are some ways to address unemployment in a market economy? Select three answers.creating new projectsincreasing regulationlowering restrictionsraising more taxespromoting hiring

c
creating new projects
i
increasing regulation
l
lowering restrictions
r
raising more taxes
p
promoting hiring
21

What is an example of goods?

A
a hotel room
B
a good haircut
C
a car wash
D
a hard cover book
22

What is the difference between marginal cost and marginal revenue?

A
Marginal cost is the money a producer earns from selling one more unit, while marginal revenue is the money a producer pays for making one more unit.
B
Marginal cost is the money a producer pays for making one more unit, while marginal revenue is the money a producer earns from selling one more unit.
C
Marginal cost is the money a producer actually earns from selling more units, while marginal revenue is the money a producer might earn from one more unit.
D
Marginal cost is the money a producer might earn from one more unit sold, while marginal revenue is the money a producer will earn from one more unit.
23

When prices drop below the point where supply and demand meet, it results in

A
coordination.
B
disequilibrium.
C
equilibrium.
D
production.

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