1.)Gerber baby food is produced in a small Michigan town. Which of these statements most likely describes the role of Gerber in that community? a. Gerber provides most of the food for the people.
b. People get free baby food if they live in the community.
c. Taxing Gerber is the only way that local government can get money.
d. Gerber provides many jobs for the community.

2.)Kelly owns a business. Which of these decisions will most likely increase her profits next year?
a. Raising her prices higher than other businesses.
b. Cutting the amount of hours that she works.
c. Putting in beautiful flowers and shrubs around her office.
d. Finding raw materials which cost less.

3.) Ryan wants the city to build a swimming pool and pay for it with taxes. He is writing a
letter to the city council. Which of these BEST describes why Ryan wants the pool built?
a. There is plenty of open land to build such a pool.
b. All people should be free to pick and choose the goods and services that they
want to buy.
c. All people should be able to go swimming even when they cannot afford a pool of
their own.
d. All people will love their city more if they can go swimming.

4.) Which of these statements is true about a protective tariff?
a. They are higher taxes so many people will not want to buy an import.
b. They help protect the government from other countries.
c. They are taxes which help American businesses export more items.
d. They are higher taxes so many people will want to buy an import.

5.)Kevin’s city keeps leaves and snow off of the city streets. Which of these statements is likely true about this service?
a. The service is a private good paid for by the owners of cars and trucks.
b. The service is a productive good paid for by businesses.
c. The service is a public good paid for by taxes.
d. The workers volunteer their time to keep the city’s roads leaf and snow free.

6.) Which of these statements is most likely true?
a. Businesses and consumers both like to see items sell at high prices.
b. Businesses and consumers both like to see items sell at low prices.
c. Businesses like to sell at high prices and consumers like to buy at low prices.
d. Businesses like to sell at low prices and consumers like to buy at high prices.

7.) Susan and Arthur have a business. They take care of pets when the owners are on
vacation. Which of the following statements is most likely true about their business?
a. Susan and Arthur are distributors of consumer goods.
b. Susan and Arthur are producers of a good.
c. Susan and Arthur are producers of a service.
d. Susan and Arthur are really wealthy.

8.) Which of the following is most likely to cause the price of a taco to go up?
a. The wages of the workers at the restaurant go down.
b. The cost of beef, lettuce, and tomatoes goes up.
c. Other restaurants lower their prices of tacos.
d. Sales taxes are lowered.