1 What is supply?

The quantities which producers are both willing and able to sell per period of time at various prices.

The total demand for a product by all consumers.

The quantity which prevails at the equilibrium price.

The quantity sold at a certain price.

2 When a company outsources, it ____________.

assigns certain tasks, such as production or accounting, to an outside company or organization

purchases products or using services that other countries offer

cuts down operational costs through retrenchment of staff

sell products to customers in various overseas locations

3 When an individual quits his job and decides to look for a new job immediately, the labor-force participation rate

increases.

may increase or decrease, depending on the length of time he/she stays at home

stays the same

decreases.

4 Which of the following inhibits the flow of goods, services, and capital across national borders?

trade deficits

fiscal policies

interest rates

trade barriers

5 What is a normal product?

It is a product which consumers buy more of as their incomes increase.

It is a product which consumers buy less of as their incomes increase.

It is a product which consumers buy regularly.

It is a product which consumers buy more of as their incomes decrease.