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Entrepreneur Test Corrections

1. Answer is D. This is a positive statement because you can actually test that theory. As you decrease in the income of people, fewer meals are consumed at restaurants because it cost more.

5. Answer is D. This would increase the opportunity cost of becoming a broadcaster because now you are losing more money or the money that was in the increase of your payment. So now if you leave the job you are leaving more behind which is a higher opportunity cost.

8. Answer is A. The answer is the demand for good X will increase because if the substitute for that good goes up in price, people are going to buy the other good.

10. Answer is A. This is the answer because there will be some type of shift when the price of the good or service changes.

11. Answer is A. When he price is higher than the equilibrium price a shortage will always occur.

12. Answer is C. As quantity demanded goes up price goes up. This is a direct relationship.

13. Answer is C. The price of a substitute is the only factor that does not change the demand.

15. Answer is A. The good is a substitute good because the price of the other good affected its demand.

16. Answer is D. If the price of the substitute goods is higher or lower, it will affect the supply curve.

26. Answer is D. If the complimentary product decreases in price your product can increase to make up for the money not spent on the other product.