24-25 Economics Unit 3 Final Exam Review

Front

An advantage of a corporation is that

Back

owners have limited liability for debt.

Front

Perfect competition is characterized by

Back

a large number of sellers and buyers.

Front

Under perfect competition, no seller can sell a product above the prevailing market price.

Back

no seller can sell a product above the prevailing market price.

Front

Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pool their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a

Back

partnership

Front

Mr. Simpson is liable for all the debts of his company. Mr. Simpson has which type of business organization? Options: sole proprietorship, monopoly, perfect competition, corporation

Back

sole proprietorship

Front

Which market has no competition? Options: perfect competition, oligopoly, monopoly, monopolistic competition

Back

monopoly

Front

If Mark Etts expresses a desire to sell his corn at a local farmer's market, he must be aware that the product is identical and that he will have no control over the price. The market structure he is MOST likely participating in is

Back

perfect competition

Front

What is one DISADVANTAGE of Ramon's type of business organization?

Back

unlimited liability

Front

Which scenario is an example of a monopoly? A local water company is the sole provider of water for a small town., A dry cleaner specializes in environmentally friendly cleaning methods., A farmer produces green beans for sale at a farmer's market., A small number of cereal companies produce most of the cereal on the market.

Back

A local water company is the sole provider of water for a small town.

Front

A market structure in which only one producer supplies a good that is in demand is called a

Back

monopoly.