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Economics Multiple Choice Assignment

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Unit 2 Evaluation Evaluation 02 Economics BUSH 035 061 This evaluation will cover the lessons in this unit. It is open book, meaning you can use your textbook and online course materials. You will need to understand, analyze, and apply the information you have learned in order to answer the questions correctly. To take the evaluation online, access your My Work page in the online course management system and follow the directions provided. Multiple-Choice Select the response that best completes the statement or answers the question. _____ 1. What is the relationship between start-up costs and a competitive market? a. b. c. d. _____ High start-up costs are likely to make a market less competitive. High start-up costs are likely to make a market more competitive. Low start-up costs are likely to make a market less competitive. There is no relationship between start-up costs and competitiveness. 2. In general, what happens to the price of a good or service when a shortage of that good or service occurs? a. b. c. d. _____ 3. When the price of a product goes down, what happens? a. b. c. d. _____ It remains unchanged while quantity demanded drops. It increases until quantity demanded equals quantity supplied. A price ceiling is imposed, lowering the price to meet the demand. It decreases until quantity demanded equals quantity supplied. Existing producers expand, and new producers enter the market. Some producers produce less, and others drop out of the market. Existing f ...
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