Download chapter 3 t_f test answers - Hialeah Senior High School

Section A-TRUE/FALSE
Directions: Place a T for True or F for False in the Answers column to show whether each of
the following statements is true or false.
1.
Marginal cost measures the advantages of producing one additional unit of a good or
service. FALSE
2.
If the marginal cost of a change in company policy is less than the opportunity cost of
the change, the owner should not make the change. FALSE
3.
Opportunity cost is the cost of choosing one opportunity or investment over another. TRUE
4.
The government affects the U.S. economy by taxing certain goods and services. TRUE
5.
Producers of certain kinds of goods, such as agricultural products, receive a subsidy
from the government. TRUE
6.
The demand curve shows that individuals are willing to consume more of a product or
service at a lower price. TRUE
7.
The equilibrium price and quantity for a good or service are at the point where the
supply and demand curves intersect. TRUE
8.
If a monopoly charges a price that is too high, consumers will switch to a lower-priced
good or service. FALSE
9.
A business must pay its fixed costs regardless of the quantity of goods or services it
produces. TRUE
10.
The variable costs of a business increase when sales increase, but fixed costs stay the same. TRUE
11.
The USDA inspects some businesses to be sure the owners have passed examinations
and paid licensing fees. FALSE
12.
OSHA inspects factories to be sure that conditions are safe for workers. TRUE
13.
A public good is a good from which everyone receives benefits, not just the individual
consuming the good. TRUE
14.
Social security and aid for dependent children and the aged are social programs that are
paid for by private charities. FALSE
15.
Redistributing income by the government is widely agreed to be unnecessary and
causes an undue burden on entrepreneurs. FALSE
16.
The economic system of a country affects how an item is produced, how it is distributed,
and the demand for the item. TRUE
17.
In some economies, the resources to produce goods and services are unlimited, so
scarcity does not occur. FALSE
18.
The distribution and production of goods and services is determined by the government
in a command economy. TRUE
19.
A good that sells in a market economy will remain on the market; a good that does not
sell will not continue to be produced. TRUE
20.
In a market economy, consumers determine the prices and quantities of goods and
services produced. FALSE
Section A-TRUE/FALSE
Directions: Place a T for True or F for False in the Answers column to show whether each of
the following statements is true or false.
1. The USDA inspects some businesses to be sure that appropriate hygienic measures are
being observed. TRUE
2. A public good is a good that benefits the government rather than the individual who
consumes the good. FALSE
3. If a monopoly charges a price that is too high, consumers must pay the price because
there is no competition. TRUE
4. If the marginal cost of a change in company policy is less than the marginal benefit of
the change, the owner should make the change. TRUE
5. Opportunity cost measures the disadvantage of choosing one opportunity over another. FALSE
6. The fixed costs of a business decrease if the business produces fewer goods or services. FALSE
7. Producers of certain kinds of goods, such as cigarettes and gasoline, pay a subsidy to
the government. FALSE
8. The fixed costs and variable costs of a business increase when sales increase. FALSE
9. The government requires some businesses to obtain licenses and charges a fee to
inspect the premises to be sure licensing requirements are met. FALSE
10. Although the U.S. government taxes certain goods and services, this does not affect
production of these goods and services. FALSE
11. The distribution and production of goods and services is determined by individual
choice in a command economy. FALSE
12. In a market economy, consumers and producers together determine the prices and
quantities of goods and services produced. TRUE
13. When supply does not equal demand, the equilibrium price for the product or service
is too low. FALSE
14. The economic system of a country affects how an item is produced and distributed, but
it does not affect the demand for the item. FALSE
15. In a market economy, whether or not a good sells determines whether it will continue
to be produced. TRUE
16. In every economy, there are limited resources to produce goods and services. TRUE
17. The supply curve shows that individuals are willing to consume more of a product or
service at a lower price. FALSE
18. Marginal benefit measures the advantages of producing one additional unit of a good
or service. TRUE
19. Redistributing income by the government is widely agreed to be a positive action that
reduces the chance of social problems due to low income. TRUE
20. Social security and aid for dependent children and the aged are social programs provided
by the government and paid for by taxpayers. TRUE