ch3 - ch3 Student: _ 1. The goals of the principal...

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ch3 Student: ___________________________________________________________________________ 1. The goals of the principal participants in the economy are to maximize: A. Income for consumers, profits for business, and taxes for government. B. Goods and services for consumers, scarce resources for businesses, and money for government. C. Happiness for consumers, profits for businesses, and general welfare for government. D. Goods and services for consumers, scarce resources for businesses, and general welfare for government. 2. For consumers, most market activity can be explained by the goal of: A. Charitable responsibility. B. Maximizing income. C. Profit maximization. D. Maximizing happiness. 3. Which of the following is a goal of businesses? A. To maximize happiness. B. To maximize profits given resource constraints. C. To produce the greatest quantity of goods. D. To maximize general welfare. 4. For government, most market activity can be explained by the goal of: A. Welfare maximization. B. Social responsibility. C. Utility maximization. D. Charitable responsibility. 5. Which of the following is a constraint that motivates economic interactions? A. The outsourcing of jobs. B. The limited resources that individuals have. C. The limited profit margin for individuals. D. The inability of individuals to take on risk. 6. Economic interactions with others are necessary because: A. Resources are limited. B. People are lazy. C. Advertising makes us want additional goods and services. D. Some people are rich and others are poor. 7. A market: A. Is any place where goods are bought and sold. B. Must have a physical location so buyers and sellers can meet. C. Does not exist for the exchange of illegal goods and services. D. Must be approved by the government before it can exist. 8. A market exists for the sale and purchase of: A. Computer services but not nuclear warheads. B. Nuclear warheads but not illegal drugs. C. Illegal drugs but not medical services. D. Illegal drugs, computer services, and nuclear warheads.
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9. People benefit by participating in the market because: A. Resources are no longer limited. B. It facilitates specialization and increased consumption. C. Buyers and sellers have the same goals. D. Participants in the market do not have to make choices. 10. Market participants include: A. Business firms and consumers but not foreigners. B. Consumers only. C. Consumers, business firms, governments and foreigners. D. Foreigners but not business firms. 11. Which of the following is not a factor of production? A. Land. B. Wages. C. Labor. D. Capital. 12. Any place where factors of production are bought and sold is a: A. Private-goods market. B. Stock market. C. Product market.
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ch3 - ch3 Student: _ 1. The goals of the principal...

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