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