Unit 3 Test

Which of the following is not one of the three necessary conditions of PURE competition?

• Very large number of buyers/sellers

• Perfect mobility of resources

• Identical products

• Freedom of entry/exit

Which of the following market structures is known for having very few firms in its industry?

• Pure Competition

• Monopolistic Competition

• Oligopoly

• Pure Monopoly

Which type of monopoly is based on ownership or control of a manufacturing method?

• Natural Monopoly

• Geographic Monopoly

• Technological Monopoly

• Government Monopoly

____________ are uncompensated side effects that either benefit or harm a third party that was not involved with the activity that caused it.

• Externalities

• Market Failures

• Spillover Effects

• Incentives

Which of the following is NOT a cause of market failures?

• Having too many public goods

• Not enough competition

• Not having enough information about the market

• Resources that can't or won't move

Which of the following is NOT an example of a public good?

• Highways

• Parks

• Police and Fire Departments

• Retail Stores

Congress passed the Clayton Antitrust Act to outlaw....

• Cease and desist orders

• Monopolies

• Mergers between large companies

• Price discrimination

Some firms can benefit from economies of scale, a situation in which the average cost of production _______ as the firm gets larger.

• Rises

• Falls

• Does not change

Which of the following federal regulatory agencies provides American's with protections for mortgages, credit cards, and other financial products?

• National Labor Relations Board (NLRB)

• Securities and Exchange Commission (SEC)

• Consumer Financial Protection Bureau (CFPB)

• Federal Deposit Insurance Corporation (FDIC)

Which of the following business organizations is run by a single person?

• Corporation

• Franchise

• Partnership

• Sole Proprietorship