Unit 2 Quiz 1

What does letter C on the Circular Flow Model represent?

• Services/Payments
• Labor/Payments
• Income/Goods and Services
• Taxes/Goods and Services
• Services/Income

What does letter B on the Circular Flow Model represent?

• Services/Income
• Labor/Payments
• Income/Goods and Services
• Taxes/Goods and Services
• Services/Payments

In the Circular Flow of Economic Activity, which of the following does households pay to the government?

• Income Taxes

• Resources

• Revenue

Which of the following correctly defines microeconomics?

• Analyzes market behavior of individuals and firms in order to understand their decision-making processes.

• Analyzes market behavior of the government in order to understand their irrational decision-making process.

This type of business organization has one owner, unlimited liability, limited lifespan, and single taxation.

This type of business organization has two or more owners, unlimited liability, limited lifespan, and single taxation.

Which type of business has many individuals involved, limited liability, unlimited lifespan, and double taxation?

Which of the following is describe by "one firm, unique products, significant control over price, and impossible to enter?

Which of the following is defined by "few firms, product differentiation depends on the industry, control over price is limited, and it has significant barriers to entry?

Which of the following is defined by "many firms, product differentiation, has somewhat of a control over prices, and is relatively easy to start?