Economics POST TEST

Several Companies sell similar products is called what type of competition?

• Perfect Competition
• Monopolistic Competition
• Monopoly
• Oligopoly

What is the biggest disadvantage of a Sole proprietorship and a partnership? 

• Start Up Costs 
• Taxes 
• Unlimited Liability 
• Receives all profits 

What is Macroeconomics the study of?

• study of total effects on the national economy and the global economy of the choices that individuals, businesses, and gov’ts make

• study of the choices individuals/businesses make and the way these choices interact and are influenced by governments

• study of marginal benefit and marginal cost

• study of scarcity

A headline reads: "Consumers demand new cell phones with greater functionality." What basic economic question is being addressed in this headline?

• for whom to produce
• how to produce
• what to produce
• when to produce

In Georgia, the Public Service Commission regulates the rates charged to customers by GA Power to ensure:

• GA Power gets enough money to make a profit.
• GA Power does not profit from the sale of electricity in Georgia.
• consumers are protected from sharp price increases by a monopoly.
• consumers are protected from power plant pollution.

When a country’s businesses invest heavily in new capital goods and new technology, which of the following is most likely to occur?

• supply and demand.
• opportunity costs.
• economic growth.
• economic freedom.

Interdependence and price leadership are characteristics of firms in what kind of market structure?

• monopoly
• oligopoly
• monopolistic competition
• perfect competition

Sharon decided to open a dry-cleaning business. She borrowed some money from her sister and took a loan from a bank. She hired one helper. What is one disadvantage of Sharon’s business?

• no separation of ownership and control
• ease of organizing the firm
• unlimited liability
• double taxation

The Federal Reserve wants to reduce the nation’s money supply. This could be accomplished by doing all of the following EXCEPT

• decreasing the discount rate
• increasing the reserve requirement
• selling securities on the open market
• making banks hold a reserve for all types of deposits

If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is

• decreasing taxes
• decreasing spending
• decreasing the money supply
• decreasing the reserve requirement