(05.01 MC) Adam Smith’s quotation would most likely be used to defend which of the following policies? (4 points)

(03.03 MC) Bill and his wife, Vickie, want to start a company that develops training sessions for corporate clients. They would like to share the decisions, have few start-up costs, and protect their personal assets. Which of these would suit their needs best? (4 points)

(03.04 MC) The Starfire Coffee chain was the only coffee-shop chain and meeting place in many American cities for more than 12 years. People paid $5 for a mug of peppermint coffee and the experience of sitting in front of a roaring fire, chatting with friends. Twelve years after Starfire’s appearance, a similar coffee-shop chain, Reindeer Brews, entered the marketplace. Reindeer charges $3 for a mug of hot cocoa and a similar community experience. How would you characterize this scenario? (4 points)

(03.04 MC) Which market type is most beneficial to consumers? (4 points)

(01.06 HC) Look at the graph. A medical device company is selling a new diagnostic tool at the equilibrium price of $15. The company hires a marketing firm to run an advertising campaign to publicize recent positive findings regarding the effectiveness of the tool. Based on the graph, what would be the result? (4 points)

(05.06 LC) Which of the following is a potential benefit of inflation? (4 points)

(03.06 MC) Occupation Salary Attorney $77,000 Software Engineer $63,000 Administrative assistant $33,000 Elemetary school teacher $40,000 Registered Nurse $53,000 Construction project manager $72,000 Based on the chart, which of these statements is true? (4 points)

(03.02 MC) Niall wants to expand his science-fiction webzine to provide academic articles on science used in science fiction. He hires four new articles editors, as well as a copy editor. He also replaces his old webmaster. Niall is increasing which resource? (4 points)

(03.02 MC) Marcie wants to work as a freelance editor. She purchases a desk, computer, widescreen monitor, and ergonomic keyboard. What kind of resources are these? (4 points)

(03.05 MC) Marginal Cost Analysis Graph © Jarry1250 2010Creative Commons Attribution-Share Alike 3.0 Unported Trevor’s company makes fine chocolates. He has figured out how to maximize his profit What letter on the graph represents Trevor’s situation? (4 points)