Econ 1st 9W Test Review

What are anti-trust laws for?

• to break up monopolies

• to limit mergers between powerful companies

• to promote competition

• All of the above

Monopolies were unregulated until __________ were passed and broke them up.

• Copyright laws

• Criminal laws

• Patent laws

• Anti-trust laws

What is the same as capitalism?

• Socialism

• Communism

• Free Enterprise System

• Mixed

Competition is good because

• there are less choices for the consumer

• it lowers prices

• wages go up for the workers

• it introduces social security benefits

What is one common basic characteristic of all economic systems?

• Price controls

• wage incentives

• small business owners

• distribution of goods and services

People who support Free Trade believe that it leads to

• higher unemployment

• increased immigration

• lower corporate tax rates

• increased economic growth

When price increases, supply

• decreases

• increases

• stays the same

• oligopoly

When price increases, demand

• decreases

• increases

• stays the same

• monopoly

If a popular perfume raises their price $10, supply ___________ and demand ____________.

• decreases; decreases

• increases; increases

• increases; decreases

• decreases; increases

What will competitive companies do if a company raises the price of a product?

• stop producing that good

• Other companies will produce alternate/similar products with a cheaper price

• the government will step in

• sing happy birthday to the company that raised their prices