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a. It can change rapidly. c. It is easy to regulate. b. It protects the less fortunate. d. It encourages growth. 6. What might be a hardship for citizens of a centrally planned economy making a transition to a market-based system? a. Farmers would have to grow the crops that the government instructed them to. b. Only poor quality goods would be available to consumers, because manufacturers focused on quantity, not quality. c. Workers would lose job security and guaranteed incomes. d. Entrepreneurs would have fewer opportunities to start new businesses. 7. Which of the following goals is difficult to achieve in a pure free market system? a. economic efficiency c. economic freedom b. economic equity d. economic growth 8. A person believes that real equality can only exist when political equality is coupled with economic equality. This person believes that democratic means should be used to distribute wealth evenly throughout society. This person is a a. socialist. c. capitalist. b. communist. d. authoritarian. 9. What is a positive externality? a. a way to generate trade that will benefit people who are from other countries b. an economic side effect that generates unexpected benefits c. a cash
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If the government set a price of $2.00 a slice, how many slices of pizza will be sold each day, according to Figure 6.2? a. none c. 200 b. 150 d. 250 ____ 19. A new office building has opened and the demand for pizza has increased. The new demand curve states that consumers will buy 200 slices at $2.50 each and 300 slices at $1.50 each. Based on Figure 6.2, if the slope of the curve has not changed, what is the new equilibrium price and quantity supplied? a. $1.00, 300 slices c. $2.00, 250 slices b. $1.50, 200 slices d. $2.00, 150 slices ____ 20. Cartels are difficult to operate for which of the following reasons? a. They work only if members keep to their agreed output. b. They are illegal worldwide. c. Firms in a cartel are likely to lose money. d. The products are perfectly competitive. ____ 21. A monopolist will set its production at a level where marginal cost is equal to a. marginal revenue. c. total revenue. b. the equilibrium market price. d. quantity supplied. ____ 22. Which of the following is NOT an example of barriers to entry? a. Cable companies must lay miles of undergound cable before they can serve a single customer in a new market. b. In some counties, laws require retail stores to be closed on Sundays. c. An entrepreneur wishing to own a clothing store must rent a building, hire workers, and buy clothing for sale. d. A person who wishes to practice medicine is required to attend medical school, complete an internship, and pass a state exam. ____
If the government set a price of $2.00 a slice, how many slices of pizza will be sold each day, according to Figure 6.2? a. none c. 200 b. 150 d. 250 ____ 19. A new office building has opened and the demand for pizza has increased. The new demand curve states that consumers will buy 200 slices at $2.50 each and 300 slices at $1.50 each. Based on Figure 6.2, if the slope of the curve has not changed, what is the new equilibrium price and quantity supplied? a. $1.00, 300 slices c. $2.00, 250 slices b. $1.50, 200 slices d. $2.00, 150 slices ____ 20. Cartels are difficult to operate for which of the following reasons? a. They work only if members keep to their agreed output. b. They are illegal worldwide. c. Firms in a cartel are likely to lose money. d. The products are perfectly competitive. ____ 21. A monopolist will set its production at a level where marginal cost is equal to a. marginal revenue. c. total revenue. b. the equilibrium market price. d. quantity supplied. ____ 22. Which of the following is NOT an example of barriers to entry? a. Cable companies must lay miles of undergound cable before they can serve a single customer in a new market. b. In some counties, laws require retail stores to be closed on Sundays. c. An entrepreneur wishing to own a clothing store must rent a building, hire workers, and buy clothing for sale. d. A person who wishes to practice medicine is required to attend medical school, complete an internship, and pass a state exam. ____