Question

What is an effect of the division of labor?
(1 point)
Responses

Consumers are offered better choices.
Consumers are offered better choices.
Investors pay more to start companies.
Investors pay more to start companies.
Producers work more quickly.
Producers work more quickly.
Employees learn how to produce an entire product.

Answer 1

Which is true of how the market sets prices?
(1 point)
Responses

Prices are set by the expected sales.
Prices are set by the expected sales.
Prices are set by how much consumers will pay.
Prices are set by how much consumers will pay.
Prices are set by the size and location of market outlets.
Prices are set by the size and location of market outlets.
Prices are set by doubling the equilibrium price.
Prices are set by doubling the equilibrium price.

Answer 2

Imagine that the amount of milk being purchased in the United States suddenly decreased.
Question
Which of the following is the most likely cause?
(1 point)
Responses

increased price of milk
increased price of milk
increased supply of milk
increased supply of milk
decreased demand for milk
decreased demand for milk
decreased competition for milk

Answer 3

Imagine your town has a local bike store called Brianna’s Bikes. After years of good business, a larger competing chain store opens up across the street. This new store, David’s Bike Depot, offers specials such as a family pack of helmets for a lower price and free bike tune-ups with a minimum purchase.
Question
Use the passage to answer the question.
Which positive effects would likely result from this new competition? Select all that apply.
(1 point)
Responses

fewer choices
fewer choices
better prices
better prices
higher quality
higher quality
higher wages

Answer 4

Which is the most important function of banks in an economy?
(1 point)
Responses

extending credit
extending credit
guarding savings
guarding savings
providing mutual fund options
providing mutual fund options
managing employee pay systems
managing employee pay systems