CH 3 - The Micro Economy Today by Schiller

CH 3 - The Micro Economy Today by Schiller - ch3 Student:

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Unformatted text preview: ch3 Student: _______________________________________________________________________________________ 1. Who participates in markets? A. Business firms. B. Business firms and consumers. C. Consumers and government agencies. D. Business firms, consumers, and government agencies. 2. The goals of market participants include the maximization of: A. Utility, profits, and the general welfare of society. B. Rent, wages, profit, and interest. C. Land, labor, capital, and entrepreneurship. D. Resource constraints, budget constraints, and legal constraints. 3. One of the basic goals that explain most market activity is: A. Utility minimization. B. Profit minimization. C. Welfare maximization. D. Cost maximization. 4. The goals of the market participants are the maximization of: A. Income for consumers, profits for businesses, and taxes for government. B. Goods and services for consumers, scarce resources for businesses, and resources not used by businesses for government. C. Satisfaction from purchases for consumers, profits for businesses, and society's general welfare for government. D. Available goods and services for consumers, scarce resources for businesses, and general welfare for government. 5. The goal of the consumer in a market economy is to use their limited income to buy: A. The greatest number of goods and services possible. B. The goods and services that maximize profits for businesses. C. Those goods and services with the lowest prices. D. The set of goods and services that maximizes their utility. 6. The goal of the business firms in a market economy is to maximize: A. Profits. B. Sales. C. Consumer utility. D. Welfare. 7. The goal of the supplier of a product or service in a market economy is: A. The use of scarce resources subject to the constraint of taxes. B. The use of scarce resources subject to the constraint of available profit. C. Profits subject to the constraint of scarce resources. D. Profits subject to the constraint of income. 8. People benefit by participating in the market because: A. Resources are no longer limited. B. There are always participants in the market that are more efficient than you are in production. C. Market participation allows individuals to specialize and, ultimately, consume more. D. Participants in the market do not have to make choices. 9. Which of the following are reasons why individual consumers participate in the market? A. They have the time to produce all the goods and services that they desire. B. They do not have the energy to produce all the goods and services that they desire. C. They have the ability to produce all the goods and services that they desire. D. They have the time, energy, and ability to produce all the goods and services that they desire....
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This note was uploaded on 09/18/2011 for the course WR 227 taught by Professor U.nknown during the Spring '10 term at Portland State.

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CH 3 - The Micro Economy Today by Schiller - ch3 Student:

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