Microeconomics Vocab Review

Choose ALL choices that are TRUE for business organizations. (TWO)

• Sole Proprietorships have limited liability.

• Partnerships benefit from specialization.

• Corporations have limited life.

• Unlimited liability is when business owners are personally responsible.

Choose ALL choices that are TRUE for business organizations. (TWO)

• Sole Proprietorships have limited life.

• Partnerships are owned by stockholders.

• Corporations have double taxation.

• Unlimited life is when businesses have a small lifespan.

Choose ALL of the choices that are TRUE about market structures. (THREE)

• Pure Competition has identical products.

• Monopolistic Competition has identical products.

• Oligopoly has a few sellers.

• Monopoly has easy barriers to entry.

• Natural monopolies are more efficient for society.

Choose ALL of the choices that are TRUE about market structures. (TWO)

• Pure Competition has a few sellers.

• Monopolistic Competition has differentiated products.

• Oligopoly has no competition.

• Monopoly has one firm and one product.

• Technological monopolies are on pieces of software.

Choose ALL of the choices that are TRUE about Law of Demand and Law of Supply. (TWO)

• Law of Demand is when price increases, quantity demanded decreases.

• Law of Demand is when price increases, quantity demanded increases.

• Law of Supply is when price increases, quantity supplied decreases.

• Law of Supply is when price increases, quantity supplied increases.

Choose ALL of the choices that are TRUE about the shifters of Demand. (THREE)

• Price

• Input Costs

• Income

• Market Size

• Related Goods

Choose ALL of the choices that are TRUE about the shifters of supply. (THREE)

• Number of Sellers

• Input Costs

• Government Actions

• Tastes and Preferences

• Related Goods

Choose ALL of the choices that are TRUE about surpluses and shortages. (TWO)

• Surplus is when quantity demanded is greater than quantity supplied.

• Surplus is when quantity supplied is greater than quantity demanded.

• Shortage is when quantity demanded is greater than quantity supplied.

• Shortage is when quantity supplied is greater than quantity demanded.

Choose ALL of the choices that are TRUE about price controls. (TWO)

• Price Floor is a minimum price on a good or service.

• Price Ceiling is a minimum price on a good or service.

• Price Floor is a maximum price on a good or service.

• Price Ceiling is a maximum price on a good or service.

Choose ALL of the choices that are TRUE about shifts in price and quantity. (TWO)

• Increase in Demand causes an increase in price and increase in quantity.

• Decrease in Demand causes a decrease in price and increase in quantity.

• Increase in Supply causes a decrease in price and increase in quantity.

• Decrease in Supply causes a decrease in price and decrease in quantity.