1.What do firm do?

a. Buy outputs

b. Consume outputs

c. Sell outputs

d. Provide factors of production

2.Which of the following is a market for factors of production?

a. A barber shop

b. A clothing store

c. The job market for certified accountants

d. A restaurant

3.Which of the following is not a fiscal policy?

a.Decreasing the goods and services tax (GST)

b. Increasing government spending on public schools

c. Increasing the interest rate

d. Decreasing government spending on public hospital

4.Which of the following is violation of the Cost-Benefit Principle?

a. Over-eating at an all-you-can-eat buffet restaurant to the point when you are sick and no longer enjoy the food.

b. Stop playing the video game when you are tired of it and no longer enjoy it.

c. Buy fewer slices of pizza when its price has increased, even if your enjoyment for them remains the same.

d. Go to the gym more now that it plays your favourite music, even though the price for a weekly membership stays the same.

5.Buying a slice of cake from the cheesecake shop costs $8. What is the marginal cost of the second slice of cake?

a. $16

b. $8

c . $4

d. $0

6.What does a supply curve illustrate?

a. The quantity that sellers would sell at each possible price.

b. The quantity that buyers would buy at each possible price.

c. The quantity at which buyers receive the most enjoyment.

d. The quantity that at which sellers make the most profit.