Question

1. which group is comprised entirely of fixed costs?

a worker salaries, rent, water, and property taxes
b gas, rent, worker salaries, and electricity
c electricity, water, machine repairs, and heat
d machine repairs, rent, property taxes, and worker salaries

1. which of the following is an example of a price floor?

a rent control
b minimum wage
c health insurance premiums
d the price of gas

1. which is true about socialism and communism?

a socialism and communism are the same.
b socialism is a social and political philosophy that arose out of the politics of communism
c communism is a political system that arose out of the philosophy of socialism.
d communism is the political philosophy that arose out of socialism.

1. what issue occurs when quantity demanded is more than quantity supplied?

a surplus
b price floor
c excess demand
d disequalibrium

Explanation:

• Question 10: Fixed costs are costs that do not change with the level of production. Worker salaries (assuming they are not piece - rate), rent, and property taxes are typically fixed. Water, gas, electricity, and machine repairs can vary with production levels.
• Question 11: A price floor is a minimum price set by the government. Rent control is a price ceiling (maximum price). Minimum wage is a price floor (minimum price for labor). Health insurance premiums and gas prices are not government - set price floors.
• Question 12: Communism is a political system that aims for a classless society with common ownership of the means of production. It arose from socialist philosophy which advocates for social ownership and democratic control of the means of production.
• Question 13: When quantity demanded is more than quantity supplied, it is called excess demand. A surplus is when quantity supplied is more than quantity demanded. A price floor is a government - set minimum price. Disequilibrium is a general state where supply and demand are not in balance, but excess demand is a more specific term for this situation.

Answer:

1. worker salaries, rent, property taxes (assuming worker salaries are fixed - term contracts, not piece - rate).
2. B. minimum wage
3. C. Communism is a political system that arose out of the philosophy of socialism.
4. C. excess demand