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SSEMI1&SSEMI3

Total questions: 35

Worksheet time: 19mins

Name
Class
Date
1.
The Market for labor would be considered a ______________ market.
a)
Product
b)
Factor
c)
Wage
d)
Monopolistic
2.
Amy is excited because she just opened her own consulting firm. Amy loves being her own boss and not having to consult with anyone else before she makes decisions.  Eventually, She even hopes to incorporate and enjoy some additional tax advantages. The only downside is t that she has invested all the money herself.  If the business fails, she could go bankrupt. What kind of business does Amy own? 
a)
Sole Proprietorship
b)
Partnership
c)
Cooperative
d)
Corporation
3.
Which of the following is TRUE regarding households, businesses, and government in the US economic system?
a)
Households pay taxes to the government but businesses dont
b)
Households act as consumers while government and businesses act only as producers
c)
The three are economically interdependent on one another
d)
Government regulates what businesses can produce but not what consumers can buy
4.
An industry dominated by a few large firms is
a)
Monoplistic
b)
Monopolistic-ally competitive
c)
Oligopolistic
d)
Perfectly competitive
5.
Darren owns his own plumbing business. He spends some of his company's profits on new pipes and tools.  Jennifer then hires Darren and his assistant to install a new septic tank in her back yard.  Which of the following statements is  TRUE?
a)
Darren is labor and Jennifer is entrepreneur
b)
Darren is the entrepreneur, Jennifer's yard is the land, and Darren's assistant represents capital
c)
Darren bought his tools in a factor/Resource market and Jennifer paid for his services in a product market
d)
Darren's company reprsents a household
6.
Taylor is thinking of leaving the big corporation he works for and starting his own firm.  He comes to you for advice and asks you what you think.  As a friend, you might want to warn Taylor that starting his own firm will mean that he has
a)
no risk
b)
to be prepared to sell stock in his company
c)
unlimited liability
d)
no way to get a loan
7.

Susan, Phil, Robert, and Martina are all lawyers.  After several years of working for big firms, they decide to pull their resources and start their own law practice together.  The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a  (a)   .

Choose from the below words
Sole proprietorship
Major corporation
Partnership
Franchise
8.
Which is NOT a condition for a monopoly to exist?
a)
A single seller
b)
No close substitutes
c)
Difficult market entry
d)
High demand for a good
9.
According to the circular flow diagram, how is the price of CEO's services determined?
a)
The interaction of buyers and sellers in the product market
b)
By supply and demand in the resource market
c)
Whatever a business will pay them, they will take
d)
According to how many Households will provide CEO's
10.
What is the main difference between pure competition and monopolistic competition?
a)
Firms in pure competition make more profits
b)
Firms in pure competition rely more heavily on advertising
c)
Firms in pure competition have no substitutes to their goods
d)
Firms in pure competition are selling nearly identical, rather than differentiated goods
11.
Which is true concerning profits for firms that operate in monoplistically competitive markets? 
a)
All firms make long term profits
b)
Long term profits are nearly impossible
c)
Short term profits are nearly impossible
d)
Many firms make short term profits through advertising.
12.
Which is not a type of business organization?
a)
Monopoly 
b)
Partnerhsip
c)
Corporation
d)
Sole-Proprietorship
13.
The buildings, structures, and machines used in the production process are called
a)
Consumer Goods
b)
Capital Goods
c)
Land
d)
Labor
14.

You walk into an office and you see a secretary typing a letter, a person fixing a computer, and an advertising executive giving a presentation. This scene is MOST RELATED to the economic concept of (a)   .

Choose from the below words
Productivity
Quantity supplied
Economic Growth
Specialization
15.

Households are (a)  

Choose from the below words
sellers in the factor market
buyers in the product market
consumers in the product market
all of the above.
16.
Firms = 
a)
Businesses
b)
Sellers in the resources market
c)
Sellers in the product market
d)
Both Businesses and Sellers in the Output market
17.
Businesses provide government with...
a)
taxes
b)
sales
c)
private goods & services
d)
interest
18.
The Circular Flow model proves that the sectors of the economy are...
a)
independent
b)
dependent
c)
interdependent
d)
round
19.

In the circular flow model, the product market describes (a)   .

Choose from the below words
stores that sell goods and services
the government paying for public go
households selling their labor to b
households receive income from busi
20.
Steel Beam Inc. is looking to purchase a new steel-processing machine and factory. In the circular flow diagram, this transaction will take place in the
a)
Product market.
b)
Resource market
c)
Foreign Exchange market
d)
Public market
21.

Match the following markets with the types of goods or services primarily bought and sold in them.

a)

product market

1.

Market where consumption goods are bought and sold

b)

financial market

2.

Market where financial assets like stocks and bonds are traded

c)

resource market

3.

Market where factors of production such as labor and raw materials are bought and sold

d)

government market

4.

Market where government provides and purchases goods and services

22.

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

a)

Factor Market

b)

Product Market

c)

Firms

d)

Individuals

23.

Where do factors of production (land, labor, etc) come from in the circular flow model?

a)

Factor Market

b)

Product Market

c)

Firms

d)

Individuals

24.

Money exchanged between an individual and a store for a good or service.

a)

Revenue

b)

Wages

c)

Rent

d)

Donation

25.

How do individuals contribute to the circular flow of economic activity? (SSEMI1)

a)

Business purchase productive resources in product markets.

b)

Individuals provide labor for factor markets and buy goods in product markets.

c)

Individuals buy productive resources from factor markets and provide labor for products markets.

d)

Businesses purchase productive resources in product markets.

26.

In the picture of the CFM, what market do individuals sell their labor? (SSEMI1)

a)

Product Market

b)

Demand Market

c)

Government Market

d)

Factor Market

27.

What is a major advantage of a business that is a partnership rather than a sole proprietorship? (SSEMI3)

a)

The responsibility for the business is shared

b)

The business is easy to set up

c)

The partners are not responsible for business debts

d)

The business is easy to sell

28.

Advantages of this business type are that the owner is their own boss and gets to keep all the profits. (SSEMI3)

a)

Partnership

b)

Sole Proprietorship

c)

Corporation

d)

Franchise

29.

Dan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. He should invest in a (a)   . (SSEMI3)

Choose from the below words
corporation
partnership
proprietorship
30.

Match each type of business ownership with the correct description.

a)

One owner

1.

A sole proprietorship has ___________ who manages the business and keeps all the profits.

b)

No more than three owners

2.

A business partnership can have ___________ sharing the risks and profits, but not exceeding this number.

c)

Two or more owners

3.

A business partnership has ___________ who share the risks and the profits.

d)

Five or more owners

4.

A large corporation may have ___________ or even more shareholders owning the business.

31.

Which business type has the most sales in the USA? (SSEMI3)

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

32.

In this market, one firm controls the market, there are very high barriers to entry, price makers, & there are no available substitutes

a)

Perfect Competition

b)

Oligopoly

c)

Cartel

d)

Monopoly

33.

In this market, 2-24 firms control the market, products can be slightly differentiated, there are high barriers to entry, & lots of control over price. (SSEMI3)

a)

Monopoly

b)

Oligopoly

c)

Perfect Competition

d)

Cartel

34.
In which market structure is there the LEAST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
35.
In which market structure is there the MOST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition