Answers 14 - 22

Question 1

For a for - profit business, the primary goal is to

Answer 1

D. Maximize profit for owners

Question 2

From the examples below, which is a for - profit business

Answer 2

C. Home Depot

Question 3

Which of the following statements describe a competitive market ?

Answer 3

C. There are a large number of buyers and sellers.

Question 4

A free market is described by which of the following statements.

Answer 4

B. The government does not intervene in any way.

Question 5

According to the law of demand, assuming other factors are held constant:

Answer 5

B. as the price of bread increases, the quantity of bread demanded will decrease

Question 6

When higher prices result in higher quantity supplied , economists call this relationship

Answer 6

A. the law of supply

Question 7

Using their comparative and absolute advantages allow countries to :

Answer 7

C. enter global trading markets

Question 8

If the federal government wanted to find out how much M1 money is in circulation in the US, it would look at which of the following savings.

Answer 8

B. Demand deposits and other checking accounts