Study guide Microeconomics

Which of the following is a disadvantage of both sole proprietorship and partnership?

• unlimited life
• unlimited liabilty
• double taxation
• resource management

Which form of business organization has the advantage of limited liability?

• sole proprietorship
• partnership
• corporation
• franchise

The graph shows a(n) _________ in demand where the price and quantity both __________

• increase, decrease
• decrease. increase
• decrease decrease
• increase  increase

The following graph illustrates a movement along the _______ or the law of _________

• supply curve, law of marginals
• demand curve, law of marginals
• supply curve, law of supply
• demand curve, law of demand

According to the graph, what was the original equilibrium price and quantity

• $3, 30
• $4, 100
• $5, 85
• $7,150

What kind of market runs most efficienctly when one large firm supplies all of the output?

• natural monopoly

• network

• perfect competition

• imperfect competition

What is monopolistic competition?

• one company selling the identical product under different names

• one company selling several different products under different names

• a very few companies selling identical products

• many companies selling similiar but not identical products

WHich of the following is not an example of barriers to entry?

• cable companies must lay miles of underground cable before they can serve a single customer in a new market

• in some countries, laws require retail stores to be closed on Sundays

• An entrepreneur wishing to own a clothing store must rent a building, hire workers and buy clothing for sale

• A person who wishes to practice medicine is required to attend medical school, complete and internship and pass a state exam.

Which statement describes market conditions at equilibrium?

• supply is greatern that demand

• demand is greater than supply

• Quantity supplied is equal to quantity demanded

• there is no supply or demand

WHich of the following would cause an increase in demand?

• Yogurt prices rise due to a milk shortage

• Yogurt prices fall due to a milk surplus

• A new health report says that yogurt makes you sick

• a new health report that says that yogurt keeps you healthy