1.A good has many substitutes and competitors in amarket, because of that we would expect this good to be

A.perfectlyinelastic, as if prices go up consumers will purchase the same amount of goods

B.elastic, as if price goes up consumers can purchase the good from competitors

C.difficult to sale

D.inelastic, as if price goes up consumers will not still purchase some goods

2.Choose a statement that best describes an egalitarian principle

A.pay should be given according toone's entrepreneurship

B.pay should be given according toone's output

C.pay should be given according toone's skill

D.everyone should receive the same amount of income

3.An example of a vertical merger is

A.a cabinet company purchasing a lumber mill

B.Gibson guitar company purchasing Fender guitar company

C.a mega grocer purchasing a local grocer

D.two competing brokerage firms merging into one

4.All of the following can cause a shift in supply EXCEPT

A.The price of related goods

B.The number of firms in an industry

C.The price of inputs of production

D.A change in technology

5.If Georgia experiences a late frost that damages the peach crop, we should expect the

A.supply curve for peaches to shift to the right and the price of peaches to fall.

B.demand curve for peaches to shift to the left and the price of peaches to fall.

C.demand curve for peaches to shift to the right and the price of peaches to rise.

D.supply curve for peaches to shift to the left and the price of peaches to rise.

6.In a perfectly competitivemarket, a firm makes the decision about price by

A.pricing goods above the demand curve

B.summing variablecosts, fixedcosts, and marginal costs

C.accepting the market price dictated by demand

D.pricing goods below competitors