ECON - Unit 2 Practice Test

Front

A one-firm industry is known as:

Back

monopoly.

Front

An industry comprised of four firms, each with about 25 percent of the total market for a product is an example of:

Back

oligopoly

Front

Liability is the

Back

legal obligation to pay debts.

Front

An example of a barrier to entry is:

• high start–up costs
• low start–up costs
• differentiated products
• government deregulation

Back

high start–up costs

Front

Which of the following is a product that might be offered in a perfectly competitive market? corn, cell phone service, electricity, chicken sandwiches

Back

corn

Front

Advertisements and giveaways are examples of _______________________.

Back

non-price competition

Front

Most large businesses are:

• sole proprietorships
• general partnerships
• corporations
• cooperatives

Back

corporations

Front

Stocks are:

Back

shares of ownership of a corporation.

Front

A dividend is a portion of a company’s profit paid out to

Back

shareholders of the company

Front

What is required for every vehicle being driven on public roads? Options: comprehensive coverage, accident coverage, collision coverage, liability coverage

Back

liability coverage