Global Economics

What does competition in Economics mean?

• When businesses try to win customers.

• When businesses work together to set prices.

• When customers avoid buying products.

• When the government controls all businesses.

Which of the following is a benefit of competition?

• Higher prices

• Fewer choices for consumers

• Better-quality goods and services

• Lower quality products

How does competition affect prices for consumers?

• It increases prices

• It keeps prices the same

• It lowers prices

• It makes prices unpredictable

What does competition provide to consumers besides better quality and lower prices?

• More variety and choice

• Less variety and choice

• Fewer options

• Higher costs

Which of the following is a way the US government promotes competition?

• Establishing and enforcing antitrust laws.

• Increasing taxes on businesses.

• Limiting the number of new businesses.

• Discouraging global trade.

What is one policy the US government enacts to promote competition?

• Enacting policies that encourage global trade

• Banning all imports

• Creating monopolies

• Raising tariffs on all goods

How does the US government support new businesses to promote competition?

• Supporting business start-ups

• Shutting down small businesses

• Only funding large corporations

• Restricting business licenses

What is a sole proprietorship?

• A form of business organization with one owner that takes all the risks and profits.

• A form of business organization with 2 or more owners that share the risks and the profits.

• A form of business organization authorized by law to act as a legal person.

• A form of business organization owned by the government.

Which form of business organization has 2 or more owners that share the risks and the profits?

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

What is a corporation?

• A form of business organization that is authorized by law to act as a legal person regardless of the number of owners.

• A form of business organization with one owner that takes all the risks and profits.

• A form of business organization with 2 or more owners that share the risks and the profits.

• A form of business organization run by a family.