1) Which best describes why a company issues stocks?

(A) to increase the company’s value (B) to ensure profits (C) to increase dividends (D) to raise capital

2) What is the best definition of profit?

(A) Profit is the possible income from producing an additional item. (B) Profit is the price of producing one additional unit of a good. (C) Profit is the additional income gained from selling an additional good. (D) Profit is the financial gain from business activity minus expenses.

3) In a mixed market economy, what is a typical way the government can reduce unemployment?

(A) The government can pay for projects to create work. (B) The government can control new factories to provide jobs. (C) The government can create new farm fields to hire workers. (D) The government can raise taxes to encourage employment.

4) What is one main objective in the study of economics?

A) recognizing the types of services available to everyone B) recognizing the relationship between producers and consumers C) recognizing the reasons that saving money is beneficial D) recognizing the difference between producers and consumers.