Multiple Choice. Please write the letter of your response on the line provided.

____1. Which of the following statements is not true?

1. Contributions to your 401k are tax deferred
2. Your company may match your contributions
3. You may withdraw your money penalty-free after age 59.
4. Funds in your 401k account are protected by the FDIC

_____2. Consider the market for textbooks. Which of the following will increase the demand for textbooks?

a. An increase in the price of textbooks

b. An increase in the number of students

c. A decrease in student income

d. A technological advance in the production of textbooks

______3. If, at the current price, the demand for textbooks is inelastic with respect to price changes, which of the follow will occur if textbook sellers increase the price of textbooks.

a. Revenue from the sale of textbooks will increase

b. Revenue from the sale of textbooks will decrease

c. Revenue from the sale of textbooks will remain the same

d. The sales of textbooks will increase

_____4. In the short-run, if a firm increases production, total production costs will increase because

a. Fixed costs increase

b. Variable costs increase

c. Both fixed and variable costs increase

d. Variable costs increase and fixed costs decrease

_____5. When the Federal Reserve engages in open market operations to buy government securities from institutions and individuals:

a. The money supply will increase and interest rates will decrease.

b. The money supply will increase and interest rates will increase.

c. The money supply will decrease and interest rates will increase.

d. The money supply will decrease and interest rates will decrease.

_____6. FICA tax covers:

a. Social Security & Medicare c. Medicare & Workers Comp

b. Federal Income tax & Social Security d. Medicare & Federal Income tax

_____7. A family-like fun company to work for is usually a:

1. a clan culture c. a market culture
2. an adhocracy culture d. a hierarchical culture

____ 8. Which of the following structures is a non-profit corporation?

a. a C corp b. an S corp c. a 501(c) corp d. an LLC

____ 9. The most likely legal form of business to fail is:

a. a corporation b. a partnership c. a sole proprietorship d. an LLC

____10. Welchs and Ocean Spray are examples of

a. LLCs b. corporations c. partnerships d. cooperatives