Unit 2 Micro Review

Look at the pie chart illustrating the different web browsers that were used to access a particular website in one month. Then answer the question that follows.

•  market failure

• Monopoly

• Oligopoly

• pure competition

Which type of market structure is characterized by a large number of firms producing identical goods?

• Oligopoly

• Monopoly

• pure competition

• monopolistic competition

Which features do business partnerships and corporations typically have in common?

• limited risk

• stock shares

• multiple owners

• unlimited liability

In what market structure does a business firm have complete control of the price?

• Monopoly

• Oligopoly

• monopolistic competition

• none of the above

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.

Which type of business organization has the highest level of risk in starting a business?

• Conglomerate

• Corporation

• Partnership

• Sole proprietorship

Using the graph to the left, If the price of widgets was set at $4...

• Buyers would purchase all of the available widgets.

• Producers would discover that the price was too low.

• Buyers would purchase more widgets than are available.

• Producers would discover that the price should be lowered.

What would happen, in the graph to the right, if the price was moved from P3 to P1?

• Producers would encounter a shortage.

• Buyers would likely purchase fewer widgets

• Producers would be less willing to make widgets.

• Buyers would scramble to get all available widgets.

In the graph above, what happened to the equilibrium price when the supply curve moved from S1 to S2?

• It did not change.

• The equilibrium price went up.

• The equilibrium price went down.

• It indicated a decrease in demand.

If a local government sets an apartment rent control price below equilibrium, what is MOST LIKELY the outcome?

• The demand and supply will increase.

• The increased supply will create a surplus.

• The increased demand will create a shortage.

• The demand will decrease and the supply will increase.