1. True or False (no explanation is needed): "A government intervention that provides a one-time cash payment to families when they have a child will increase the average number of children in each family."

2. True or False (no explanation is needed):"A good can be inferior through the entire range of incomes."

3. Demand curves describe:

A.The relationship between priceand quantity demanded of a good

B.The relationship between income and quantity demanded of a good

C.Willingness to pay for each unit of a good

D.The cost of producing a unit of output

E.Both A & C are correct

F.Both B & C are correct

4. Suppose a car company has a research and development breakthrough and this breakthrough allows the creation of a new type of car. The company determines that demand for this new type of car is described by,

Q = 250,000 - 50P,

where Q is quantity of the new cars sold and P is the price in US Dollars. If the company charges $10,000 for each car, what is the market value of the research and development breakthrough that allowed for this new type of car to exist?

More information is needed

A $5 billion

B $10 billion

C $2.5 billion

D $1 billion

5. Other things equal, which of the following goods will have the most inelastic demand?

A All jeans made and sold by Levi's in the United States

B All stone washed jeans made by Levi's and sold in the United States

C All stone washed jeans made and sold by Levi's in the United States

D All jeans made by Levi's and sold in the United States

6.Many governments have laws that protect new industries that produce a specific good or service.The idea behind these laws is to help an industry develop and remove the laws once the industry can compete internationally. Which concept from class would support the case for these protective laws?

A Cost Maximization

B Economies of Scale

C Technological Change

D Profit Maximization

E Economies of Scope