Question

Which of the following economic actions demonstrates a negative incentive?
(1 point)
• An employee is fired.
• An item is put on sale.
The cost of production decrease.
• The board of a company invests more.

Answer 1

Which government action would interfere with free trade?
(1 point)
O increasing taxes on domestic producers
O charging duty taxes on foreign goods
O adding a value-added tax to consumer goods
O giving contracts to factories in other countries

Answer 2

What is an effect of the division of labor?
(1 point)
O Consumers are offered better choices.
Investors pay more to start companies.
O Producers work more quickly.
O Employees learn how to produce an entire product.

Answer 3

Which is true of how the market sets prices?
(1 point)
Prices are set by the expected sales.
Prices are set by how much consumers will pay.
Prices are set by the size and location of market outlets.
• Prices are set by doubling the equilibrium price.

Answer 4

Imagine that the amount of milk being purchased in the United States suddenly decreased.
Which of the following is the most likely cause?
(1 point)
• increased price of milk
• increased supply of milk
• decreased demand for milk
O decreased competition for milk

Answer 5

An employee is fired.

Answer 6

Increasing taxes on domestic producers.

Answer 7

Employees learn how to produce an entire product.

Answer 8

Prices are set by how much consumers will pay.

Answer 9

Decreased demand for milk.