Question 1(multiple choice worth 3 points) (american money lo 2 hc) a clothing store opens in a small college town, next to a large discount clothing store. the new store owner wants her customers to think her clothing is high quality so she sets the prices very high and displays pictures of models wearing her clothing. the store goes out of business shortly after opening. what was the flaw in the store owner's plan? she should have thought about the pricing of the nearby stores instead of hoping customers would buy into her marketing. she did not target the right group of buyers and should have focused on students who like fashion more than other groups. she should have focused her marketing plan on one or two groups rather than a broad range of buyers. she should have over-priced her clothes but then offered steep discounts for return shoppers only. question 2(multiple choice worth 3 points) (american money lo 1 lc) the u. s. government to students who study certain fields in college and graduate school to increase the supply of educated workers in these fields. gives tax breaks offers financial assistance gives homes offers free travel question 3(multiple choice worth 3 points) (american money lo 3 hc) imagine that you have opened a factory. you have decided to produce bicycles. you can produce as many bicycles as you would like, but government regulations prevent you from charging more than $200 for your bicycles, in order to protect competition in the marketplace. which statement correctly names this type of economy and explains its democratic benefit? a market economy protects the rights of the individual over what is best for corporations. a market economy limits what companies can do or sell and keeps individual rights intact. a mixed economy offers some protection for consumer rights but still allows a good deal of choice. a mixed economy allows free competition to determine how best to treat consumers without limiting corporations. question 4(multiple choice worth 3 points) (american money lo 4 mc) which best explains what happens to the money that a consumer deposits into a bank account? the bank saves some of the money for independent loans and pays some to the federal reserve. the bank pools the money with other district banks allowing the consumer quick and convenient access to funds. the bank pays interest to the consumer and safely keeps all the money in the bank's vault until the consumer needs it. the bank reserves part of the money and uses the rest to make loans to other consumers who need them.