1. The price of a good goes up, as a result of this price increase, we would expect

A.

A movement down along the demand curve.

B.

A shift right in the demand curve.

C.

A movement up along the demand curve.

D.

A shift left in the demand curve.

2. George inherited a certificate that represents ownership in a company. He is told it gives him certain voting rights and a legal claim to potential future profits. George is likely the owner of a(n)

A.

Note

B.

Stock

C.

Reit

D.

Bond

3. If a firm is in a perfectly competitive market and they decide to raise their price by $1, we would expect

A.

Unit elastic change in buyers.

B.

Little change in the amount of buyers and economic profit to increase.

C.

All buyers to purchase that good from other firms.

D.

Some buyers to choose another firm to buy that good from.

4. Which of the following is a common example of price discrimination?

A.

Lowering the quality of the good you produce.

B.

Charging exorbitant amounts of money for a good.

C.

Offering a coupon for your product.

D.

Selling a good at the same price in each store.

5. A person earns $120,000 and is subject to a progressive tax bracket system. The first $20,000 are nottaxed, the next $50,000 are taxed at 10%, the next $50,000 are taxed at 20%. How much TOTAL tax does person this person pay?

A.

$18,000

B.

$15,000

C.

$12,000

D.

$24,000