E2 GRADE A FULLY ANSWERED
Profit equals the total amount of money made minus
a. expenses.
b. prices.
c. revenue.
d. supply. - (correct answer)a. expenses.
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. - (correct answer)d. supply.
When an oligopoly exists, how many producers dominate the market?
a. none
b. one
c. a few
d. many - (correct answer)c. a few
_____ is the type of competition that occurs in a competitive market without identical
producers.
a. Monopolistic
b. Pure competition
c. An oligopoly - (correct answer)a. Monopolistic
The chart compares the price of graphic T-shirts to the quantity demanded.
,This chart shows the link between
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. - (correct answer)a. interest in a
product and the price a consumer pays.
How can producers maximize their profit? Check all that apply.
a. They can work to increase their marginal cost.
b. They can work to decrease their marginal cost.
c. They can raise prices to increase marginal revenue.
d. The can lower prices to decrease marginal revenue.
e. They can keep marginal costs below marginal revenues.
f. They can keep marginal revenues below marginal costs. - (correct answer)b. They
can work to decrease their marginal cost.
c. They can raise prices to increase marginal revenue.
e. They can keep marginal costs below marginal revenues.
What is the best definition of marginal cost?
a. the possible income from producing an additional item
b. the price of producing one additional unit of a good
c. the additional income gained from selling an additional good
d. the financial gain from business activity minus expenses - (correct answer)b. the
price of producing one additional unit of a good
The chart shows the marginal cost of producing apple pies.
According to the chart, the marginal cost of producing the second pie is
a. 1.00
, b. .50
c. .25
d. 1.25. - (correct answer)b. .50
What is the difference between a price floor and a price ceiling?
a. A price floor is the minimum price allowed for a good. A price ceiling is the maximum
price allowed for a good.
b. A price floor is the maximum price allowed for a good. A price ceiling is the minimum
price allowed for a good.
c. A price ceiling below the equilibrium price has no effect.
d. A price floor above the equilibrium price has no effect. - (correct answer)a. A price
floor is the minimum price allowed for a good. A price ceiling is the maximum price
allowed for a good.
Brenda's Boards manufactures skateboards. Each skateboard sells for $45 and
includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board,
$1 for the paint, and $10 for the labor. What is the total profit the company earns after
selling 100 boards?
$300
$350
$3,000
$3,500 - (correct answer)$3,000
The graph shows a point of equilibrium.
If the quantity supplied is greater than the quantity demanded, what must happen to the
price in order to reach equilibrium?
a. The price of the product will increase to meet equilibrium.
b. The price of the product will decrease to meet equilibrium.
c. Supply and demand must be raised.
Profit equals the total amount of money made minus
a. expenses.
b. prices.
c. revenue.
d. supply. - (correct answer)a. expenses.
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. - (correct answer)d. supply.
When an oligopoly exists, how many producers dominate the market?
a. none
b. one
c. a few
d. many - (correct answer)c. a few
_____ is the type of competition that occurs in a competitive market without identical
producers.
a. Monopolistic
b. Pure competition
c. An oligopoly - (correct answer)a. Monopolistic
The chart compares the price of graphic T-shirts to the quantity demanded.
,This chart shows the link between
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. - (correct answer)a. interest in a
product and the price a consumer pays.
How can producers maximize their profit? Check all that apply.
a. They can work to increase their marginal cost.
b. They can work to decrease their marginal cost.
c. They can raise prices to increase marginal revenue.
d. The can lower prices to decrease marginal revenue.
e. They can keep marginal costs below marginal revenues.
f. They can keep marginal revenues below marginal costs. - (correct answer)b. They
can work to decrease their marginal cost.
c. They can raise prices to increase marginal revenue.
e. They can keep marginal costs below marginal revenues.
What is the best definition of marginal cost?
a. the possible income from producing an additional item
b. the price of producing one additional unit of a good
c. the additional income gained from selling an additional good
d. the financial gain from business activity minus expenses - (correct answer)b. the
price of producing one additional unit of a good
The chart shows the marginal cost of producing apple pies.
According to the chart, the marginal cost of producing the second pie is
a. 1.00
, b. .50
c. .25
d. 1.25. - (correct answer)b. .50
What is the difference between a price floor and a price ceiling?
a. A price floor is the minimum price allowed for a good. A price ceiling is the maximum
price allowed for a good.
b. A price floor is the maximum price allowed for a good. A price ceiling is the minimum
price allowed for a good.
c. A price ceiling below the equilibrium price has no effect.
d. A price floor above the equilibrium price has no effect. - (correct answer)a. A price
floor is the minimum price allowed for a good. A price ceiling is the maximum price
allowed for a good.
Brenda's Boards manufactures skateboards. Each skateboard sells for $45 and
includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board,
$1 for the paint, and $10 for the labor. What is the total profit the company earns after
selling 100 boards?
$300
$350
$3,000
$3,500 - (correct answer)$3,000
The graph shows a point of equilibrium.
If the quantity supplied is greater than the quantity demanded, what must happen to the
price in order to reach equilibrium?
a. The price of the product will increase to meet equilibrium.
b. The price of the product will decrease to meet equilibrium.
c. Supply and demand must be raised.
