Module 3 Review (Economics)

When a business becomes incorporated, stock holders look to receive what in exchange for their investments?

• Public trading of the assets

• Lower taxation rates

• New business formation

• Profits in the form of dividends

Which of the following is a potential downside to both a sole proprietorship and a partnership?

• Ownership is in the form of stocks

• Heavy personal liability is present

• Information is rarely shared

• Taxation is proportional

Disney and Pixar are combined under the same company in order to better adapt to the market for children's movies. Which term exemplifies this economic practice?

• Conglomerate Merger

• Vertical Merger

• Horizontal Merger

• Publicly Traded Offices

When one business such as a small country store serves as the only supplier in an area that does not require more than one supplier, this is called what?

• A harmful monopoly

• Pure competition

• An incentive based market

• A natural monopoly

How are consumers affected by the presence of increased competition?

• Higher numbers of competitors typically lead to lower prices

• Businesses in competition often have inferior products

• Consumers are never affected by the presence of competition

• Purely competitive markets cannot exist

When unions attempt to make negotiations with management teams, they engage in a process referred to as...

• Peaceful protesting

• Sage regard for the enemy

• Stock trading

• Collective bargaining

Which of the following would NOT contribute to a worker's wages?

• Difficulty of work being done

• Productivity level of the worker

• Education level required for the job

• Presence of stock markets

In a free market system, which individuals are responsible for the generation of new businesses and ideas?

• Tax payers

• Entrepreneurs

• Corporate lobbyists

• Congress

Which of the following would NOT be a main goal of a labor union?

• Hours more suitable to worker's family lives

• Lower wages

• Safer working conditions

• Increased wages

Which of the following would be considered a form of price competition?

• Fantastic customer service

• Half off clearance sales

• Extra services

• Longer hours than competitors