Unit 3 Economic Review

Partnerships are the easiest form of business organization to start up.

• True

• False

Corporations can be privately owned or publicly held (traded on a stock market).

• True

• False

If an owner defaults on a foreclosure, the bank will issue him/her a mortgage.

• True

• False

What characteristic distinguishes monopolistic competition from pure competition?

• number of firms

• product differentiation

• high pricing

• competition

Which of the following is NOT a public good?

• Pearland Library

• The Air Force

• Houston Galleria Mall

• Beltway 8

All of the following are types of non-price competition EXCEPT...

• discounts

• quality of materials

• features

• design/look

Which market structure is defined by a single producer?

• perfect competition

• franchise

• oligopoly

• monopoly

Which type of business organization has joint, but unlimited, liability, potential disagreements between owners, and shared profits?

• sole proprietorship

• partnership

• corporation

• franchise

Which type of market structure best describes the restaurant industry?

• perfect competition

• monopoly

• monopolistic competition

• oligopoly

What is unique about a public good?

• Everyone can buy a public good.

• Public goods are financed by crowd funding on the Internet.

• Public goods are paid for by the government via tax dollars.

• Many companies produce public goods.