1. what factor has the greatest influence on elasticity and inelasticity of supply? a. profit b. labor c. time d. financing 2. which of the following is an example of the way in which the use of technology can lower the cost of producing an item? a. the importing of fresh vegetables from South America rather than using canned vegetables b. the making of breads and pasteries in local shops rather than large bakeries c. the use of e-mail to replace slower surface mail d. the delivery costs of gasoline to the consumer by diesel trucks 3. what happens when wages are set above the equilibrium level by law? a. firms tend to try to break the law and hire people at the equilibrium level b. firms employ MORE workers than they would at the equilibrium wage c. firms employ FEWER workers than they would at the equilibrium wage d. firms hire more workers but fewer hours than they would at the equilibrium wage 4. why did communist government use a command economic system for many years? a. as a way to avoid the expense and difficulties of a free market b. as a method of keeping consumers from getting what they wanted c. to limit the costs of production of many goods d. in an attempt to creat a society in which everyone was equal 5. how does a company arrange to sell its products to people who are unwilling to pay for the top price for them? a. by allowing rebates to some perferred customers who buy a lot of goods b. by charging each customer the maximum amount they are willing to pay c. by charging different prices according to the group to which the buyer belongs d. by changing the product and selling a lesser one to the people who are unwilling to pay for the top product 6. when the government deregulates a product or service, what happens to it? a. the product or service is available to more people b. the product or service becomes cheaper c. some government regulations over the industry are eleminated d. government control over the industry is stopped 7. why does the goverment sometimes give monoply power to a company by issuing a patent? a. the government does not want competition for the product b. the company makes a product better than anyone else's c. the company pays the government for the patent d. the company can then profit from their research without competition 8. what percentage of businesses are sole proprietorship? a. 25% b 40% c. 60% d. 75% 9. which of the following represents the percentage of all U.S businesses that are corporations, and the percentage of all goods that those corporations sell? a. 10% of businesses 50% of goods sold b. 20% of businesses 90% of goods sold c. 50% of businesses 75% of goods sold d. 20% of businesses 50% of goods sold 10. what is a fringe benefit? a. a cash payment for casual work b. a business other than sales or marketing c. a payment other than wages or saleries. d. an accounting term meaning profits 11. which of the following is a business organization owned by a group of people for their mutual benefit? a. a coorperative b. a lavor union c. a limited liability partnership d. a professional organization 12. what are royalties? a. fees paid to celebrities for using their names b. fees paid to law firms and accountants c. a percentage of profits paid to the government d. a percentage of earnings paid for a franchise 13. what is collective bargaining? a. union and company representatives meeting to negotiate a new labor contract b. an organization of workers representing several different occupations c. an agreement to allow everyone to be part of the labor negotiating process d. a situation in which the righs of labor have been set aside 14. how are wages for a particular job determined? a. by advertisments in the news paper or on line b. by the equilibrium between the supply and demand for workers for that job c. by the amount of inflation in the economy d. by the federal wage and hour department 15. when did labor unions begin to gain some legal rights in the United States? a. 1900's b. 1920's c. 1930's d. 1950's