5 Written Questions

1. An income level below that which is needed to support families or households
2. the process used to produce a good or service
3. the concept that everyone can compete in the marketplace
4. fixed costs plus variable costs
5. the force that encourages people and organizations to improve their material well-being

5 Matching Questions

1. variable
2. externality
3. work ethic
4. Robert L Johnson
5. welfare

1. a Founder of BET- A media Company
2. b Government aid to the poor
3. c a factor that can change
4. d an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
5. e a commitment to the value of work and purposeful activity

5 Multiple Choice Questions

1. A graph of the quantity supplied of a good at different prices
   1. supply
   2. demand curve
   3. supply curve
   4. welfare
2. an American manufacturer and philanthropist who founded one of the world's largest confectionery companies, the Hershey Chocolate Company
   1. inelastic
   2. Milton Hershey
   3. free rider
   4. demand curve
3. a cost that does not change, no matter how much of a good is produced
   1. total cost
   2. free contract
   3. fixed cost
   4. free rider
4. describes demand that is not very sensitive to a change in price
   1. welfare
   2. inelastic
   3. elastic
   4. work ethic
5. Starbucks expander
   1. total cost
   2. Dave Thomas
   3. demand curve
   4. Howard Shults

5 True/False Questions

1. Dave Thomas → the desire to own something and the ability to pay for it.

   True        False

2. total revenue → fixed costs plus variable costs

   True        False

3. substitutes → goods used in place of one another

   True        False

4. operating cost → the cost of operating a facility, such as a store or factory

   True        False

5. demand → the desire to own something and the ability to pay for it.

   True        False