Economic Sectors - The Private Sector

The factor market includes which of the following as factors of production?

• land, labor, capital, and entrepreneurship

• land, labor, and capital

• land only

• land and labor only

A group of firms that work together to reduce competition is referred to as

• entrepreneurship

• private sector

• trust

• monopoly

Which of these is where households buy goods and services that firms produce?

• private sector

• labor market

• factor market

• product market

When two or more people come together to share resources and responsibility over a business, it is referred to as a

• nonprofit

• sole proprietorship

• partnership

• corporation

A corporation can be best described as

• a business owned by stockholders, who own the rights to the company’s profits

• a business set up to provide a benefit to society

• a business co-owned by two or more partners who agree how to run it and share the profits or losses

• a business organization owned and controlled by one person

According to the circular flow model of the private sector, what do households contribute to the product market?

• selling of land, labor, capital

• earn income from selling resources

• selling goods and services

• buying goods and services

According to the circular flow model of the private sector, what do businesses contribute to the factor market?

• buying goods and services

• selling land, labor, and capital

• selling goods and services

• buying land, labor, and capital

Which of these are examples of monopolistic competition?

• The Standard Oil Company purchases smaller competitors, eventually cornering 90% of the petroleum market

• McDonald's, Burger King, Wendy's, and Jack in the Box offer a variety of burgers, chicken, fish, and sides at comparable prices

• Levi's, Wrangler, Old Navy, and H & M sell blue jeans, varying in price based on the style

• Consumers can choose between cable, satellite, or streaming services like Hulu for television

Which of these are examples of oligopoly?

• A group of gas station owners in a town work together to keep their prices similar, hoping to drive away competitors

• Hundreds of farmers across the nation grow and sell corn and allows for consumers to compare prices

• Large automakers like GM, Ford, Chrysler, Toyota and Honda dominate the American markets, making it hard for smaller automakers to have an impact

• A Wal-Mart opens in a small town, forcing many small businesses to close in the months following

Which of these best defines unemployment?

• those that cannot provide basic necessities from themselves

• those that are able to work but unable to obtain a job

• those that are retired or unable to work because of disability