Economics Review

Why do geographical monopolies arise?

• No one wants to buy the product

• People are too lazy to drive somewhere else

• The cost of production is at its lowest

• No others sellers exist in the area

How does our free enterprise system encourages competition?

• Our system doesn’t encourage competition

• Our system tells people what to do

• Businesses and entrepreneurs have the freedom to produce any product

• None of the above

A corporation files for bankruptcy and owes massive amounts of debts, who is not liable for the debt?

• CEO

• Stockholders

• Entrepreneurs

An association of workers in the same industry, regardless of the job each individual worker performs, is what type of union?

• a. Trade

• b. Skilled

• c. Industrial

• d. None of the above

Before a monetary collapse happens, the inflation rate is above 500. What type of inflation is happening?

• Hyper

• Varying

• Creeping

• Maximum

Why do natural monopolies arise?

• Only one seller exists in the area

• The firm is the only one that has the product

• People are too lazy to drive to another area

• When a firm can produce a product more cheaply than another firm could

Who is a catalyst in a free enterprise system?

• the sparkplug

• the thief

• the bank

What is the economic philosophy that places that primary importance on the role of money in the economy?

• Monetarism

• Economics

• IRS

Why is a sales tax considered a regressive tax?

• Because a person with the higher income pays a smaller percentage than the person with the lower income

• Because a person with the lower income pays a smaller percentage than the person with the higher income

• Everyone has to pay the same amount

• Because the tax is optional

What is the definition of the stockholders?

• People who own a share or shares of stock in a corporation; same as shareholders.

• People who work there

• The consumers who purchase from the companies