Unit 2 Macro Test Review

A _______________ is a business owned jointly by two or more people. 

• Partnership 
• Corporation 
• Limited Liability Corporation (LLC)
• Sole Propirtorship

An advantage of a corporation is that

• owners pay fewer taxes than owners of other forms of business.
• the business is subject to little government regulation.
• owners have limited liability for debt.
• owners have direct and immediate control over daily management of the business.

Perfect competition is characterized by

• a large number of sellers and buyers.
• diverse products.
• sellers acting together to set prices.
• uninformed buyers and sellers.

Barry and two associates have been operating a business that is not going well. Barry is stressed out because the company is over $200,000 in debt and he knows that if it goes out of business, he and his two associates will have to pay it out of their own pockets. It sounds like Barry and his two associates have a 

• partnership.
• corporation.
• sole proprietorship.
• stock.

Mr. Simpson is liable for all the debts of his company. Mr.Simpson has which type of business organization?

• sole proprietorship
• monopoly
• perfect competition
• corporation

Which market has no competition?

• perfect competition
• oligopoly
• monopoly
• monopolistic competition

Which market structure is BEST indicated by the soda market?

• monopoly
• pure competition
• oligopoly
• natural monopoly

A market structure in which only one producer supplies a good that is in demand is called a 

• monopoly.
• oligopoly.
• competition.
• monopolistic competition.

An industry that is dominated by a few large firms is 

• monopolistic competition.
• a monopoly.
• perfect competition.
• an oligopoly.

What does Gross Domestic Product

mean?

• The total value of all goods and services a country imports.

• The total value of all goods and services a country exports.

• The total value of all goods and services produced within a country in one year.

• The net loss in profits within a country due to imports.