7. A market can accurately be described as: (a) a place to buy things. (b) a place to sell things. ( the process by which prices adjust to reconcile households, firms and workers buying and selling decisions. (d) a place where buyers and sellers meet. 8. Price controls are government rules or laws that forbid: (a) the adjustment of prices to clear markets. (b) the adjustment of demand to clear markets. (c) the adjustment of supply to clear markets. (d) the existence of markets. 9. Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreasing marginal product of that factor. This is an example of: (a) decreasing returns to scale (b) the law of diminishing returns (c) constant returns to scale (d) an inefficient production technique 10. Variable costs change as changes. (a) the price of capital (b) the quantity of capital (c) output (d) interest rate 2 COMPILED BY DR ERIC ADU AGYEMANG GRASAG PRESIDENT HOPEFUL, 2024