1.

Which of the following industry types typically has a FEW large producers?

	A.	Pure competition
	B.	Monopolistic competition
	C.	Oligopoly
	D.	Pure monopoly

2.

	A.	Pure competition
	B.	Oligopoly
	C.	Pure monopoly

3. If you were a manager of a business selling RESTAURANT MEALS, what would happen to your GROSS REVENUES if you LOWERED the price of this product per meal?

	A.	Gross revenues would DECREASE if you lowered the price of each meal
	B.	Gross revenues would REMAIN THE SAME if you lowered the price of each meal
	C.	Gross revenues would INCREASE if you lowered the price of each meal

4.

How is demand for INFERIOR goods (like generic macaroni and cheese) affected by a DECREASE IN INCOME (as is the case when the economy experiences a severe recession)? In a recession, the demand for generic macaroni & cheese

	A.	Decreases
	B.	Is NOT affected
	C.	Increases