a.  makes possible the exchange of goods and services between buyers and sellers.
b.  refers only to a specialized place or service where goods and services are exchanged.
c.  refers only to a formally organized place where a well-defined commodity is always traded.
d.  refers only to a localized place or service that facilitates the exchange of goods and services.
e.  refers to both large and small places where poorly defined commodities are traded. 

a.  Consumer income
b.  Consumer tastes
c.  Price of good X
d.  Prices of other goods
e.  Consumer expectations 

a.  An increase in the price of golf clubs
b.  A decrease in the popularity of golf
c.  An increase in the number of golfers
d.  An expected increase in the price of golf balls
e.  A decrease in the price of golf balls

a.  independent goods.
b.  complementary goods.
c.  substitute goods.
d.  economic bads.
e.  free goods. 

a.  the supply of electric ranges would decrease.
b.  the demand for gas ranges would decrease.
c.  the demand for electric ranges would increase.
d.  the supply of electric ranges would increase.
e.  the quantity supplied of electric ranges would increase.

a.  An increase in the price of steel
b.  An improvement in the technology of automobile manufacturing
c.  An increase in the price of motor oil
d.  A decrease in the number of automobile producers
e.  An increase in the productivity of workers 

a.  The prices of resources or inputs
b.  The price of consumer goods or services, or outputs
c.  The number of producers in the market
d.  The technology available
e.  The expectations of producers

a.  At a price of $50, a shortage will result equal to 250 units.
b.  At a price of $50, quantity supplied equals 5 units.
c.  Equilibrium price is not attainable.
d.  At a price of $50, market forces will work to increase the price.
e.  The price floor is ineffective.

a.  a shortage will result equal to 100 units.
b.  a shortage will result  equal to 200 units.
c.  the price will move to its equilibrium level.
d.  producers will not supply the market.
e.  a surplus will result equal to 100 units.

a.  Demand increased.
b.  Demand decreased.
c.  Supply decreased.
d.  Quantity supplied decreased.
e.  Quantity demanded increased. 

a.  Equilibrium price will rise, but we cannot say for sure what will happen to equilibrium quantity.
b.  Equilibrium price will fall, but we cannot say for sure what will happen to equilibrium quantity.
c.  Equilibrium quantity will rise, but we cannot say for sure what will happen to equilibrium price.
d.  Equilibrium quantity will fall, but we cannot say for sure what will happen to equilibrium price.
e.  Equilibrium price and equilibrium quantity will both fall. 

a.  the fast-food business get tired of producing the same thing time after time.
b.  consumers wanted and were willing and able to pay for the changes.
c.  businesses could make higher profits with the changes because they could rip off the customer.
d.  consumers wanted the changes and businesses had to respond even though they lost money on the deal.
e.  businesses wanted the changes and were willing and able to pay for them. 

a.  An inward shift of the demand curve for restaurant meals
b.  An outward shift of the demand curve for home-delivered food
c.  An increase in resources used for home-delivered food
d.  A decrease in the value of resources used in restaurant meals
e.  A decrease in the value of resources used in home-delivered food

a.  lower-valued uses to higher-valued uses.
b.  higher-valued uses to lower-valued uses.
c.  producing goods and services consumers want, to producing goods and services businesses want.
d.  higher- to lower-valued uses according to consumer sovereignty.
e.  the production of goods to the production of services. 

a.  A married couple holding joint title to their house
b.  A child living with her parents
c.  A college student leasing an apartment in her father's name
d.  A worker living in his employer's home
e.  A retired man living in his daughter's home 

a.  $21,714
b.  $18,000
c.  $17,000
d.  $22,000
e.  $19,000 

a.  A pair of jeans
b.  A bottle of Beck's beer
c.  A haircut
d.  A cash register
e.  A train ticket 

a.  the owner is protected against failure of the firm to pay its debt.
b.  shareholders are the rightful owners of the company.
c.  a government-issued charter has established its legal existence.
d.  the owner enjoys unlimited liability and unlimited rights to all profits.
e.  the owner is prohibited from selling shares of stock. 

a.  is owned by people who enjoy limited liability.
b.  has a lower debt ratio.
c.  is characterized by limited profits.
d.  is required to own a seat on a stock exchange.
e.  has no tax liability. 

a.  The purchase of a share of IBM stock
b.  The purchase of a new drilling machine by the Schmidt Construction Company
c.  The deposit of $2,000 in a passbook account
d.  The purchase of U.S. Treasury bills
e.  The purchase of a new winter coat 

a.  Kuwait sells oil to a U.S. oil company.
b.  IBM purchases computer chips from Motorola.
c.  Germany buys Pontiacs from General Motors.
d.  Pepsi-Cola sells soft drinks to a local retailer.
e.  France imports leather shoes from Italy. 

a.  the supply of resources.
b.  income to households.
c.  part of the money market.
d.  the resource market.
e.  the market for goods and services.