Unit 3 Economics Review

The Advantage of a sole proprietorship include: - ease of formation - total ownership of profit - total control of business decisions - All of the above

• ease of formation

• total ownership of profit

• total control of business decisions

• All of the above

A business that is legally distinct from its owners and considered an entity in its own right is a:

• corporation

• partnership

• proprietorship

• franchise

The owners of a corporation are:

• its stockholders

• its president

• its employees

• its board of directors

The disadvantages of proprietorships include unlimited liability, limited ability to raise funds, and....

• limited life of the business

• difficulty in forming

• possibility for conflict

• double taxation of profits

Which of the following business organizations combines two or more people's specialization with equal decision making authority?

• partnership

• sole proprietorship

• corporation

• franchise

In a perfectly competitive market, products must be

• identical

• slightly different

• unique

• all of the above

When a single producer has complete control over one kind of good or service, the market structure is called

• monopoly

• oligopoly

• monopolistic competitive

• perfectly competitive

When deciding between jobs, people consider

• all of the above

• the salary

• vacation time

• their satisfaction with the work

The first minimum wage law set an hourly rate of

• $.25

• $.50

• $1.00

• $2.00

Increasing your educational level can

• all of the above

• increase your income

• increase your probability of remaining employed

• increase your lifetime income