Economics Test 2

Perfect competition occurs in a market where there are many firms each selling:

• identical products

• similar products

• a unique product

• differentiated products

A monopoly owned and operated by any level of government

• geographic

• natural

• government

• technological

This monopoly occurs when with a patent or copyright:

• geographic

• natural

• government

• technological

Market structure with the MOST control over prices is

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

A market structure that is controlled by a few, large firms is called

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

The market structure that is most difficult to enter is called

• perfect competitionn

• monopolistic competition

• oligopoly

• monopoly

What type of business has only one owner, who takes all the risks and keeps all the profits?

• sole proprietorship

• partnership

• corporation

A form of business organization that is not a person but a legal entity with divided ownership that sells stock:

• sole proprietorship

• partnership

• corporation

This type of business consists of two or more people, does NOT sell shares/stock.

• sole proprietorship

• partnership

• corporation

Which of the following is an advantage of free trade?

• Countries can specialize in goods in which they have a comparative advantage.

• Protects domestic jobs

• Protects infant industries

• Tariffs on imports may provide a source of government revenue.