Unit 2 Econ Quizz

One of the functions of money is

• consumable good

• medium of exchange

• productive resource

• store of exchange

Which term could explain how John is living in a new home even though he has not paid the full price of the home?

• money

• utility

• credit

• barter

Low prices encourage consumers to

• supply more

• purchase more

• produce less

• buy less

High prices cause producers to

• decrease supply

• decrease demand

• increase supply

• increase demand

In what business organization do two or more people enjoy equal decision making authority?

• corporation

• partnership

• limited proprietorship

• sole proprietorship

In the circular flow model businesses purchase ____________ from households.

• Products

• Resources

• taxes

• final goods

Lack of longevity affects

• oligopolies and monopolies

• partnership and corporations

• sole proprietorships and corporations

• sole proprietorships and partnerships

A disadvantage of partnerships include

• difficult to start-up

• potential for conflict

• controlled by board of directors

• specialization

Since shareholders only risk what they buy in stocks, this business organization has low liability.

• franchise

• sole proprietorship

• partnership

• corporation

Which of the following markets is an example of an oligopoly?

• clothing

• soft drinks

• blueberries

• all of the above