(05.02 HC) Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of the second want to try more free market-based policies. Which of the following actions would likely occur in one but not the other industrializing economy? (4 points)

(03.04 MC) In the rural farming town of York Springs, Smith’s was the only grocery store and Lehman’s was the only animal feed mill. How would you describe these businesses? (4 points)

(05.02 HC) Country A has a mixed economy with free-market leanings. Country B has an absolute command economy. Both want to increase corn product exports. Which action would Country A most likely take that Country B would not? (4 points)

(05.01 MC) Which of the following entities would most likely agree with Adam Smith’s statement? (4 points)

(03.05 MC) Marginal Cost Analysis Graph © Jarry1250 2010Creative Commons Attribution-Share Alike 3.0 Unported Tanya is opening a pie-making business. Buying all of the supplies and equipment has been expensive. What letter on the graph represents where Tanya is in the pie-making business? (4 points)

(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)