Unit 3 Test Review: Market Structures (E.16-E.28)

Jaidyn and Matthew own a company making Hello Kitty school supplies marketed toward high school students. Katie and Emma also own a company making Hello Kitty school supplies marketed toward high school students. Neither company can afford to lower their prices any further or else they'll no longer earn a profit. In order to compete with Katie and Emma, Jaidyn and Matthew decide to market their company aggressively through social media. What is this type of competition called?

• Marketing

• Non-Price Competition

• Advertising

• Price Competition

In monopolistic competition, what happens when a firm begins to charge an excessive price for its product?

• The firm will most likely face lawsuits for price fixing.

• The government will regulate the price of the product.

• Consumers will boycott the product.

• Consumers will buy a rival firm’s product instead.

Hunter's union decides it is time to negotiate a new contract with the Helly Kitty factory he works at. What is the negotiation process between the union and management known as?

• collective bargaining

• bilateral agreement

• labor contract

• right-to-work law

Which of the following is an advantage of partnerships?

• Owner has full control - a high level of freedom allows them to run their company as they wish.

• They can attract and keep talented employees more easily than some business forms.

• At least one person has unlimited liability

• Owner is the sole receiver of profit.

Which of the following best describes price discrimination?

• a way to attract customers through style, service, or location, but not a lower price

• the ability of a company to control prices and total market output

• the division of consumers into groups based on how much they will pay for a good

• making a product different from other, similar products

What type of merger would it be if Chic Fil A were to merge with a company that raises and processes chickens?

How have right-to-work laws affected union membership?

• They have increased union membership.

• They have had no effect on union membership.

• They have kept membership rates steady.

• They have decreased union membership.

What is one example of a monopoly that the U.S. government generally permits?

• telephone conglomerates

• car dealerships

• cable television networks

• professional sports leagues

What happens to an industry when the government deregulates it?

• The industry’s products or services become available to more people.

• The industry has no control over its decisions.

• The industry gains more control over its decisions.

• The industry’s products or services become scarcer.

Which of the following describes both the substitution effect and the income effect?

• changes in income due to job changes

• market changes that affect production

• effects on producers of goods

• factors that influence what people buy