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WorksheetsModule 3 Review (Economics)
Total questions: 30
Worksheet time: 15mins
When a business becomes incorporated, stock holders look to receive what in exchange for their investments?
Public trading of the assets
Lower taxation rates
New business formation
Profits in the form of dividends
Which of the following is a potential downside to both a sole proprietorship and a partnership?
Ownership is in the form of stocks
Heavy personal liability is present
Information is rarely shared
Taxation is proportional
Disney and Pixar are combined under the same company in order to better adapt to the market for children's movies. Which term exemplifies this economic practice?
Conglomerate Merger
Vertical Merger
Horizontal Merger
Publicly Traded Offices
When one business such as a small country store serves as the only supplier in an area that does not require more than one supplier, this is called what?
A harmful monopoly
Pure competition
An incentive based market
A natural monopoly
How are consumers affected by the presence of increased competition?
Higher numbers of competitors typically lead to lower prices
Businesses in competition often have inferior products
Consumers are never affected by the presence of competition
Purely competitive markets cannot exist
When unions attempt to make negotiations with management teams, they engage in a process referred to as...
Peaceful protesting
Sage regard for the enemy
Stock trading
Collective bargaining
Which of the following would NOT contribute to a worker's wages?
Difficulty of work being done
Productivity level of the worker
Education level required for the job
Presence of stock markets
In a free market system, which individuals are responsible for the generation of new businesses and ideas?
Tax payers
Entrepreneurs
Corporate lobbyists
Congress
Which of the following would NOT be a main goal of a labor union?
Hours more suitable to worker's family lives
Lower wages
Safer working conditions
Increased wages
Which of the following would be considered a form of price competition?
Fantastic customer service
Half off clearance sales
Extra services
Longer hours than competitors
Which type of business only has one owner?
Sole Proprietorship
Partnership
Corporation
Non-profit
All of the following are conditions for perfect competition except:
Many buyers and sellers
Easy entry and exit
Many barriers to entry
Low prices due to numerous competitors
If a market is dominated by a single seller this is considered a(n):
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
Brand loyalty is the most important to competitors in what type of market structure?
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
Which type of market structure is the most likely to form a cartel to artificially raise prices?
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
Which of the following is NOT an example of non-price competition?
A convenient location for a gas station
A celebrity endorsement of a good
A hotel offering complementary breakfast
A 50% off sale at a book store
In which market situation is it nearly impossible for competitors to raise their prices?
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
What is the main purpose of advertising in monopolistic competition?
Lowering prices
Informing consumers of a monopoly
Building brand loyalty
Showing the similarity of product
If every supplier of video games merged into one large corporation, what type of merger would that be?
Vertical merger
Horizontal merger
Conglomerate merger
Corporation
When is it the most likely that a conglomerate merger will occur?
When competing brands merge into one company
When a company targets a specific customer base and the separate goods they are likely to buy
When completely unrelated products are closed down
When the means of production is seized
Which type of business ownership places the most risk on the owner of a business?
Franchise
Corporation
Partnership
Sole Proprietorship
Which type of business is primarily run by a board of directors?
Franchise
Corporation
Partnership
Sole Proprietorship
Which of the following would NOT likely lead to increased productivity in a company?
Increased technology
Investment in training of workers
Investment in research and development
Filing for bankruptcy
What tactic is primarily used by labor unions in order to obtain benefits?
Representative democracy
Collective bargaining
Injunctions
Creation of a surplus
What is the term used to describe a situation in which an entrepreneur decides to open their own location of an established business?
Franchise
Corporation
Partnership
Sole Proprietorship
Imagine that Disney purchases Regal Cinemas in order to own both the production and distribution areas of the film industry. What type of merger would this be?
Horizontal Merger
Conglomerate
Vertical Merger
Diagonal Merger
What is the name given to a business that has a presence in multiple countries throughout the world?
Sole Proprietorship
Corporation
Nonprofit Organization
Multinational
Charities such as Saint Jude's and the World Wildlife Fund are examples of what?
Sole Proprietorship
Corporation
Nonprofit Organization
Multinational
What is the purpose of antitrust laws?
To prevent monopolies from forming
To maintain a competitive market for goods and services
To keep prices low for consumers
All of the above
Which of the following is an example of a natural monopoly?
Walmart
McDonald's
KUB
Dead End BBQ
