Economics Unit 3
Which of the following external factors would cause a positive change to the stock market? A)Inflation B)Natural disasters C)Political uncertainty D)Multinational peace agreement being signed
D)Multinational peace agreement being signed
Which of the terms below defines a market with significant barriers to entry and a single supplier? A)Oligopoly B)Perfect Competition C)Monopolistic Competition D)Monopoly
D)Monopoly
In which of the market structures does a market with few sellers in the market and with slightly different prices exist? A)Perfect Competition B)Monopoly C)Monopolistic Competition D)Oligopoly
D)Oligopoly
In which market structure would the products be identical? A)Monopolistic Competition B)Monopoly C)Oligopoly D)Perfect Competition
D)Perfect Competition
Which market structure has the easiest barriers to entry? A)Oligopoly B)Monopoly C)Monopolistic Competition D)Perfect Competition
D)Perfect Competition
Which market structure would watermelon belong to? A)Monopolistic Competition B)Monopoly C)Oligopoly D)Perfect Competition
D)Perfect Competition
Match the term to the correct definition: Charter
government document that gives permission to start a corporation
Match the term to the correct definition: Stockholder
individuals who purchase shares of a company
Match the term to the correct definition: Corporation
legally recognized as a separate legal entity that has all the rights of a person or sole proprietor
One of the significant drawbacks of a general partnership is A)All general partners are liable B)Collaborating with your partner to create a unified vision C)Monetary decisions must be handled by both D)Different people have different management styles
A)All general partners are liable
Bonds are different than stocks in that bonds: A)Bonds are loans, while stocks you own B)Requires you to pay a small percentage of the stock price in order to own it C)Are unsecured debt D)Bonds you own, while stocks are loans
A)Bonds are loans, while stocks you own
When investors receive profits from companies this known as: A)Dividends B)Divisors C)Bonds D)Mortgages
A)Dividends
Incentives for employees other than money, such as paid vacations, and retirement pay are known as A)Fringe Benefits B)Income Effect C)Surplus D)Search Costs
A)Fringe Benefits
Partnerships in which some partners are protected from personal liability in certain situations, such as another partner's mistakes. A)Limited Partnership B)General Partnership C)General liability partnerships D)Articles of Partnership
A)Limited Partnership
Which market structure would Chevrolet Vehicles belong to? A)Oligopoly B)Monopolistic Competition C)Perfect Competition D)Monopoly
A)Oligopoly
In which market structure is there no control over the price of a product? A)Perfect Competition B)Oligopoly C)Monopoly D)Monopolistic Competition
A)Perfect Competition
In which of the market structures does a highly competitive market with many buyers and sellers of an identical product have no control over the price of a product? A)Perfect Competition B)Monopoly C)Monopolistic Competition D)Oligopoly
A)Perfect Competition
Imagine someone was injured in your establishment one concern for sole-proprietorship's is: A)Personal liability B)Income effect C)Fringe benefits D)Limited partnerships
A)Personal liability
Unlimited liability for sole proprietors means that A)Sole proprietors can lose everything they possess if their business fails B)Sole proprietors are responsible for the shares they own in a business C)Sole proprietors should merge and create corporations as soon as they have enough capital D)Partnerships are generally preferred over sole proprietorships
A)Sole proprietors can lose everything they possess if their business fails
The most common form of business organization in the United States is A)Sole proprietorship B)General Partnership C)Limited partnership D)Corporations
A)Sole proprietorship
All of the following are features of limited partnerships except A)One partner is responsible for the day-to-day management B)All partners can be held liable C)Partners may invest in the business and earn a profit D)Other partners have limited if any responsibilities
B)All partners can be held liable
Market structure(s) in which the products are unique include A)Perfect Competition B)Monopolistic Competition and Oligopoly C)Monopolistic Competition and Monopolies D)Monopolistic Competition and Perfect Competition
B)Monopolistic Competition and Oligopoly
Which market structure has the smallest number of sellers? A)Oligopoly B)Monopoly C)Monopolistic Competition D)Perfect Competition
B)Monopoly
When an enterprise highlights a goods or services appearance, quality, and location rather than concentrating on the price this is known as A)Surplus B)Nonprice competition C)Patent D)Commodities
B)Nonprice competition
All of the following are features of sole proprietorship's except A)Liability is unlimited B)Profits are taxed twice C)They are the most frequent form of business D)There is a sole owner
B)Profits are taxed twice
The easiest form of business to establish in our free market economy is a A)Corporation B)Sole proprietorship C)General partnership D)Limited partnership
B)Sole proprietorship
Buying partial ownership in a corporation is identified as A)Margin B)Stocks C)Loans D)Bonds
B)Stocks
If a business is under performing and the stocks or shares in that business decrease in value, the market is called:
Bear Market
When the market is doing well and the value of the stocks, or shares in a business, increase this is known as a
Bull or Bear Market
Which of the following external factors would cause a negative change to the stock market? A)Natural disaster B)Terrorist attack C)All of the above D)Labor strike
C)All of the above
Paying a percentage of the purchase price and then borrowing the rest of the money is known as A)Interest B)Buying bonds C)Buying on margin D)Loans
C)Buying on margin
Which market structure has the most control over prices? A)Monopolistic Competition B)Perfect Competition C)Monopoly D)Oligopoly
C)Monopoly
Which market structure would the electric company typically belong to? A)Monopolistic Competition B)Oligopoly C)Monopoly D)Perfect Competition
C)Monopoly
Imagine your school is purchasing new economic textbooks. Only three firms exist and all produce slightly different economic textbooks. The one that offers the best price wins the contract to provide books for your school. The type of market structure described is a: A)Perfect competition B)Monopolistic competition C)Oligopoly D)Monopoly
C)Oligopoly
Which market structure has the least barriers to entry? A)Oligopolies B)Monopoly C)Perfect Competition D)Monopolistic Competition
C)Perfect Competition
In a perfect competition which of the following factors are key for buyers when competing for sales: A)Differentiation B)Heterogenous products C)Price D)Multiple buyers
C)Price
Partnerships in which both partners are equally responsible for the management and financial responsibilities of the business is known as: A)Limited liability partnerships B)Articles of partnership C)Limited partnerships D)General Partnerships
D)General Partnerships
Which of the answers below is not a characteristic of monopolistic competition? A)Multiple sellers B)Differentiation of goods and services C)Multiple buyers D)Identical products
D)Identical products
Which market structure would Levi Jeans belong to? A)Perfect Competition B)Monopoly C)Oligopoly D)Monopolistic Competition
D)Monopolistic Competition
Which of the terms below describes a highly competitive market with many buyers and sellers with slightly differentiated goods and services? A)Perfect Competition B)Oligopoly C)Monopoly D)Monopolistic Competition
D)Monopolistic Competition
Which of the following markets is the least competitive market structure? A)Perfect Competition B)Monopolistic Competition C)Oligopoly D)Monopoly
D)Monopoly
Investors in the stock market are always guaranteed they will earn a profit. (true or false)
False
Match the term to the correct definition: Franchise
a fee in exchange for the right to use the parent companies name, business model and products
Match the term to the correct definition: Stocks
also known as shares that are sold to raise capital
Match the term to the correct definition: McDonald's
an example of a franchise
Match the term to the correct definition: Multinational Corporations
companies that operate in multiple countries
Match the term to the correct definition: Dividend
portion of the companies earnings given to investors
Match the term to the correct definition: Franchisee
the person who pays a fee in exchange for the right to use a parent companies products, name and business model.
Match the term to the correct definition: Franchisor
the person who sells the rights of a franchise