1. The basic economic problem where people have unlimited wants while there are limited resources is referred to as Scarcity a. True b. False 2. A purely economy, private businesses may not produce certain essential goods that are not profitable; while in a purely economy, the prices may not be set at market equilibrium. a. Market, Command b. Command, Mixed c. Mixed, Command d. Mixed, Market e. Command, Market 3. Opportunity cost is a. Whatever that must be given up in order to obtain something else b. A dollar value attached to the missed opportunity c. The price the economy pays of not owning capital equipment d. Balancing the needs of a society by producing several goods at once 4. Which of the following statements is true with respect to the graph shown below? a. Price P is a price floor that affects the quantity traded on the market. b. At price P, quantity demanded exceeds quantity supplied. c. At price P, quantity A is demanded. d. At price P, this market is in equilibrium. e. Both a and b are true. 5. Which of the following will increase the Equilibrium Price for Apples? a. Increase in Production costs of Apple b. Increase in the number of Sellers c. News comes out Apples may cause cancer d. Decrease in Population e. None of the above 6. Which of the following is NOT a criterion of a partnership. a. Medium to Large size b. Profit distribution is based on the agreement One owner is responsible for the operation of the company d. All partners have decision making ability