Unit 6 TEST

The law of supply states that

• businesses will provide more products when they can sell them at higher prices.

• businesses will provide fewer products when they can sell them at higher prices.

• consumers will purchase fewer products when they must buy them at higher prices.

• consumers will purchase fewer products when they can buy them at lower prices.

Last Christmas a popular toy was sold out all over town. When one of the local toy stores received a shipment, it advertised the toy at twice its normal price. The store doubled the price due to

• scarcity.

• competition.

• increased productivity.

• a monopoly.

The tools owned by a self-employed electrician are

• liabilities.

• required by law.

• capital.

• copyrighted

The free-enterprise system means that Americans

• are able to run their businesses in the way they think is best.

• are entitled to receive free products from stores.

• do not have to pay taxes during their first year in business.

• depend on the government to tell them how to operate.

Tags

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.7.2

CCSS.RL.8.1

CCSS.RL.9-10.2

In a command economy, most of the capital, tools, and production equipment are

• outdate

• privately owned

• owned by the government.

• unregulate

Who pays a business’s debts in a failed sole proprietorship?

• the owner of the business

• the employees of the business

• the stockholders

• none of the above

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

A three-year-old girl receives a doll for her birthday. After she plays with the doll for a short time, the girl breaks one of the doll's arms and exposes a sharp metal connecting piece. Concerned, the girl's parents contact the

• Department of Commerce.

• Consumer Product Safety Commission.

• National Institute of Standards and Technology.

• Truth in Packaging and Labeling Commission.

The term shortage is best described as

• When quantity supplied is greater than quantity demanded

• When quantity demanded is greater than quantity supplied

• When quantity supplied and quantity demanded are equal

• 1.  When producers have to cut production because of a drought

Which of the following best describes a market economy?

• Means of production are privately owned

• The government controls the means of production

• Individuals and government each own some of the means of production

• Means of production are based on customs and traditions

Which of the following would best be used to describe a sole proprietor?

• natural resource

• capital

• labor

• entrepreneur