Economics Final Exam #1-40

Front

The definition of perfect pure competition would have included the following phrase:

Back

Products produced by rival business are perfect substitutes.

Front

A disadvantage to a corporation is that-

Back

dividends are taxed twice, once as a corporate income and once as personal income.

Front

Authorization to start a business issued by the local government is called a/an

Back

Business license

Front

Why might you choose an investment with high risk instead of one with low risk?

Back

For a potentially higher return.

Front

A depreciating U.S. dollar will-

Back

Makes exports cheaper and exporting firms will benefit

Front

The main reason that a government taxes is so-

Back

Generate revenue to fund government programs.

Front

Technology influences economic growth by-

Back

Using machines to make production more efficient.

Front

The law of supply is

Back

Prices reduce as efficiency increases.

Front

A monopoly is

Back

A kind of market that has only one large firm that supplies all of the outputs

Front

What financial liability does Robert have now that he bought a house and moved out of his apartment?

Back

He is directly responsible for property taxes.