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1. customers cannot purchase every product. how does this fact affect companies that make products?
a: they increase costs to make up for low sales.
b: they decrease quality to make up for low sales.
c: they provide better value so that customers purchase their products.
d: they provide fewer options so that customers purchase their products.

2. which of the following is a cost of production? select all that all apply. (2 pts)
a: improving processes
b: buying raw materials
c: spending time working
d: paying property taxes
e: choosing the best products

3. three basic economic questions: what to produce? how to produce it? what is the third basic economic question?
a: how much to produce?
b: for whom to produce?
c: where to produce?
d: what natural resources are used to produce?

4. which of the following economic questions demonstrates a negative incentive?
a: an employee is fired
b: an item is put on sale
c: the costs of production decrease
d: the board of a company invests more

5. which government action would interfere with free trade?
a: increasing taxes on domestic producers
b: charging duty taxes on foreign goods
c: adding a value-added tax to consumer goods
d: giving contracts to factories in other countries

6. what is an effect of the division of labor?
a: consumers are offered better choices
b: investors pay more to start countries
c: producers work more quickly
d: employees learn how to produce an entire product

7. which is true of how the market sets prices?
a: prices are set by the expected sales
b: prices are set by how much consumers will pay
c: prices are set by the size and location of market outlets

8. imagine that the amount of milk being purchased in the united states suddenly decreased. which of the following is the most likely cause?
a: increased price of milk
b: increased supply of milk
c: decreased demand for milk
d: decreased competition for milk

9. 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 bike 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. which positive effects would likely result out of this new competition? select all that apply. (2 pts)
a: fewer choices
b: better prices
c: higher quality
d: higher wages

10. which is the most important function of banks in an economy?
a: extending credit
b: guarding savings
c: providing mutual fund options
d: managing employee pay systems

1. C: They provide better value so that customers purchase their products.

The better value of the products can be achieved by making the products have more benefit to the users , making the prices become cheaper, or by improving the customers service for the buyers of the product. By doing this, the company's product would be seen more favorably compared to competitor's product.

2. B: Buying raw materials

C: Spending time working

cost of production refers to the cost that directly incurred in the process of creating goods or services.  Cost of productions generally covers things such as raw materials , labor salaries, the cost of machinery, and the cost of utilities such as water and electricity.

3. B: For whom to produce?

This economic question is asked in order to figure out the target demographic that companies would aim using their products. In order for this question to be answered, the companies first need to identify the problems that faced by the people and start to develop the product that can help the people solve that problems.

4. A. An employee is fired

Negative incentive refers to the things that could influence people to do something by creating some negative impacts for the people who failed to do so. This could include things such as firing an employee if he/she does not meet standard, cutting down their bonuses, preventing their promotions, etc.

5.B   Charging duty taxes on foreign goods

Government action would be considered as an interruption tot he free trade if the action somehow give either positive or negative value to foreign organizations that affect them in the competition. Charging duty taxes in foreign goods would definitely achieve this. When being charged with duty taxes, the price of foreign goods would increase when it arrives in consumers market. This will give them disadvantage in the competition

6.C  Producers work more quickly

Division of labor refers to the act of separating the total works into smaller parts and divide it among different people in the organizations. Business organizations do this in order to make their workers able to focus on the things that they good at while handling the rest to other colleagues that posses different skills.

7.B  Prices are set by how much consumers will pay

In the free market, consumers had the right to refuse or agree to a purchase. This would give them more power since the companies would be forced to set up their price according to the consumers' demand. If most consumers felt that the price does not equal to the value given by the product, the companies would eventually go bankrupt.

8.A   Increased price of milk

When the price of a certain type of products increased, the number of people who had the purchasing power to buy them would also be reduced. These people later on would try to find alternatives in other products and gradually decrease the amount of milk that sold in the market.

9 B: Better Prices

C: Higher quality

When competitors arrive, business now would be forced to make decisions that make their products seen more favorable compared to the competitors'. This would make them either decreasing the prices for the consumers or adding additional values to their products so the costumers become more interested.

10.A Extending credit

People that have capital store their money to the bank in order to obtain security and interest benefits. People that do not have the capital would be able to borrow the money that already stored in the bank so they can grow their business.

From the activities above, the role of the bank is as the organization that extend the credit from those who had the capital to those who do not.

answer; formal diagnosis (vera wand formal dress);

answer; not notated (at least, not in the traditional sense) and includes many improvised sections and solos;