Microeconomics 1

According to the laws of supply and demand, a decrease in demand will cause prices to:

• Increase
• Decrease
• Stay The Same
• Equalize

Unlimited Liability is a major disadvantage for which types of business structures?

• Corporation & LLC
• LLC & S-Corp
• Partnership and Sole Proprietorship
• Sole Proprietorship and Co-op

The amount of goods and services firms are will and able to sell at different prices is called:

• Demand
• Supply
• Law of Demand
• Law of Supply

Consumers will buy more at low prices, and less at high prices. This is known as:

• The law of demand
• The law of supply
• Supply
• Demand

Based on the graph shown, what has happened?

• Supply Increase
• Supply Decrease
• Demand Increase
• Demand Decrease

Which of the following scenarios would cause demand to decrease and prices to drop for a given good?

• Shortage of Resources
• Positive Celebrity Endorsement
• A Bad Harvest
• Negative News Report

What types of goods are sold under the conditions of monopolistic competition

• Identical
• Similar, but differentiated
• Abstract
• Unique

Which of the following grants an inventor sole rights for his/her invention/innovation?

• Trademark
• LLC
• Copyright
• Patent

In the resource market, a)_________ are sellers and b)________ are buyers.

• a) Firms, b) Households
• a) Consumers, b) Owners
• a) Households, b) Firms
• a) Owners, b) Consumers

Which is NOT required for a product to be in demand?

• ability
• scarcity
• willingness
• desire