According to the text, which of the following received government subsidies that are in place to protect the population rather than for economic reasons?

national airlines in Western Europe

a national car company in Indonesia

tobacco growers in the United States

What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future.

store the goods until the price rises.

store the goods indefinitely regardless of when the price rises.

sell the goods now but try to get the higher price for them.

sell the goods now and try to invest the money instead of resupplying.

Which of the following is the best example of the law of supply?

a sandwich shop increases the number of sandwiches they supply every day when the price is increasing.

a milling company builds a new factory to process flour to export.

a food producer increases the number of acres of wheat he grows to supply a milling company.

a catering company buys a new dishwasher to make their work easier.

When the selling price of a good goes up, what is the relationship to the quantity supplied?

It becomes practical to produce more goods.

there is no relationship between the two.

the profit made on each item goes down.

The cost of production goes down.

What is the effect of import restrictions on prices?

They often cause prices to rise steeply and then drop.

They usually do not have any lasting effect on price.

An indirect government intervention in a market that affects the production of a good is a

all of these are indirect intervention.

Do you know how to calculate total revenue?

Selling price x the number of items sold.

Selling price - the number of items sold.

Profit is calculated by

taking total revenue less total costs.

taking total fixed costs + variable costs less the total revenue.

taking total fixed costs + marginal costs - variable costs.

Why does marginal cost go down and then up again as more goods are produced?

Because the fixed costs are spread over more units and the workers begin to specialize. After a certain point, the marginal cost begins to increase because the benefits of specialization are exhausted and more workers begin to share the fixed capital available.