Unit 2 Market Structures & Business & Labor Terms Test

What is the definition for learning effect?

• When a business owner has full legal responsibility for all

  business debts

• A business partnership in which only one of the partners has

  both responsibility and liability

• The difference between the original purchase price and the

  sale price when there is a gain from

• The idea that education can lead to higher wages and

  increased productivity.

What is the definition for barrier to entry?

• Factors that can deter or make it more difficult for a new firm

  to enter the market

• The power of one business or group of businesses to control

  market output and prices.

• A secret and sometimes illegal agreement between businesses

  to set prices, limit production, or divide the market in a way

  that can disrupt the market equilibrium.

• When a business buys or merges with another business that

  offers the same goods and services.

What is the definition for capital gain?

• A business partnership in which only one of the partners has

  both responsibility and liability

• The difference between the original purchase price and the

  sale price when there is a gain from the sale

• To send labor to an outside contractor or foreign country to

  create a good or service in order to cut costs.

• All the above

What is the definition for limited partnership?

• The difference between the original purchase price and the

  sale price when there is a gain from the sale

• None of the above

• A business partnership in which only one of the partners has

  both responsibility and liability

• All the above

What is the definition for equilibrium wage?

• The point at which the quantity of labor supplied is equal to

  the quantity of labor demanded

• all the above

• None of the above

• Outsourcing

  To send labor to an outside contractor or foreign country to

  create a good or service in order to cut costs.

What is the definition for outsourcing?

• All the above

• Having a legal responsibility

• None of the above

• To send labor to an outside contractor or foreign country to

  create a good or service in order to cut costs.

What is the definition for liable?

• Having a legal responsibility

• All the above

• None of the above

• When three or more unrelated businesses merge together to

  provide goods and services.

What is the definition for conglomerate?

• When businesses involved in different stages of production of a

  product merge together.

• When three or more unrelated businesses merge together to

  provide goods and services.

• All the above

• When a business buys or merges with another business that

  offers the same goods and services.

What is the definition for economics of sale?

• The power of one business or group of businesses to control

  market output and prices.

• Factors that cause the average cost per unit to decrease for

  production as more units are produced.

• All the above

• Expenses that must be paid up front when starting a new

  business

What is the definition for market power?

• None of the above

• A secret and sometimes illegal agreement between businesses

  to set prices, limit production, or divide the market in a way

  that can disrupt the market equilibrium.

• The power of one business or group of businesses to control

  market output and prices.

• All the above