Economics Unit 3 Quiz

Compare and contrast the following forms of business organization: sole proprietorship, partnership, and corporation.

Explain the function of profit in a market economy as an incentive for entrepreneurs to accept the risks of business failure.

Define stock, and describe the connections between capital, stock markets, banks, and the economy.

Analyze the various ways and reasons that firms grow either through reinvestment of financial capital or through horizontal, vertical, and conglomerate mergers.

Summarize the role and historical impact of economic institutions (such as labor unions, multinationals, and nonprofit organizations) within market economies.

Identify the basic characteristics of monopoly, oligopoly, monopolistic competition, and perfect competition.

Explain how competition impacts pricing and production in market structures.

Identify laws and regulations adopted in the U.S. to promote competition among firms.

Explain ways that firms engage in price and non-price competition.

Describe the characteristics of natural monopolies and the purposes of government regulation of these monopolies (such as utilities).