Module 2: Producers and Consumers in the Economy

What is the term for when competing companies work together to raise prices or lower wages?

• Monopoly

• Collusion

• Franchise

• 1. Contract

Which of the following describes legislation that gives the U.S. government the power to break up monopolies?

• Price Floor

• Progressive Tax

• Antitrust Laws

• Corporation

What do we call a legally binding agreement between two or more parties?

• Supply

• Demand

• Contract

• Inflation

A business that is authorized by the state to operate as a separate legal entity from its owners is called a:

• Partnership

• Corporation

• Sole Proprietorship

• 4. Franchise

What is a general decrease in the price of goods and services called?

• Inflation

• Deflation

• Progressive Tax

• Price Ceiling

The amount of a resource, good, or service that consumers are willing and able to buy at a given price is called:

• Supply

• Demand

• Price Floor

• Inflation

When supply and demand are equal, this is called:

• Price Floor

• Equilibrium

• Inflation

• Unlimited Liability

What is a business licensed to operate by a parent company known as?

• Franchise

• Partnership

• Nonprofit Organization

• LLC

A general increase in the price of goods and services is referred to as:

• Deflation

• Inflation

• Price Ceiling

• Collusion

What type of business allows partners to have limited liability but more control over operations?

• Sole Proprietorship

• Corporation

• Limited Liability Corporation (LLC)

• 10. Nonprofit Organization