1. Improved agricultural technology is likely to have what effect on the agricultural product market?

A. Supply will increase

B. Demand will decrease

C. Supply will decrease

D. Demand will increase

2. What is the cost of pursuing equality-based income redistribution?

• A. More taxes
• B. Less income for all
• C. Less efficiency
• D. Less tax revenue

3. Which of the following is a cause of recent United States trade deficits?

• A. Increased foreign incomes
• B. Increased U.S. incomes
• C. Stagnant incomes
• D. Lower U.S. incomes

4. Why might government want to allow natural monopolies to keep their monopolies?

A. Natural monopolies can achieve very low costs through economy of scale.

B. Natural monopolies cannot make a normal profit.

C. Natural monopolies always charge the lowest price.

D. Natural monopolies result in the highest output possible