WorksheetsTest Review Unit 3
Total questions: 50
Worksheet time: 2hrs 34mins
Which statement reflects the inverse relationship between quantity demanded and price?
As the price goes up, quantity demanded goes up.
As the price goes down, quantity demanded goes up.
As the supply goes up, the price goes up.
As the supply goes up, the demand goes up.
According to the substitution effect, if two items satisfy the same need and the price of one rises,
people will buy more of the higher-priced item.
people will buy more of the lower-priced item.
the demand will go up.
people will buy something else.
Which economic rule states that the additional satisfaction people get from consuming one more unit of a product will lessen with each additional unit they consume?
real income effect
law of diminishing marginal utility
law of demand
substitution effect
A shift to the left in the demand curve indicates a(n)
decrease in price.
decrease in demand.
increase in population.
increase in demand.
When a product becomes a fad, the demand curve for that product
slopes upward.
becomes a straight line.
shifts to the right.
shifts to the left.
A government-set maximum price that can be charged for a good or service is a(n)
price ceiling.
price floor.
subsidy.
tax.
Supply schedules contain more information than supply curves.
True
False
“Side effects” of producing the good or service and can have a positive or negative affect on others.
Externalities
Public Goods
Free-rider problem
The "invisible hand" describes:
the forces of Supply and Demand functioning in a perfect theoretical market.
How capitalism controls the market system.
Adam Smith's entire perspective on economics.
How to achieve economic stability in a market economy.
In a ___________ some key industries may be publicly owned and operated by government:
Market economy
Command economy.
Mixed Economy.
Fireball Economy
A government implements a five-year plan to end climate change. All private businesses and citizens will be forced to follow the program.
Command Economy
Market Economy
Mixed Economy
Snooze you loose, pal!! HAHAHAHA
A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?
Which of these businesses could be the partnership described in the bottom row of the table?
A convenience store is owned by equal partners,a mother, a father, and their adult daughter. All three work full time at the convenience store.
A dry-cleaning establishment is owned and operated by one man. His brothers have invested some money in the business but don’t have any responsibilities for it.
A canoe rental shop is owned and operated by one woman. She has taken out loans from two different banks.
An art gallery is owned and operated by a woman whose husband helps part-time. They have hired an assistant to help run the gallery.
Assuming all companies shown in the diagram sell office products, what is the best description of the merger illustrated by the diagram?
a vertical merger
a series of vertical mergers
a horizontal merger
a series of horizontal mergers
What type of business organization does this table represent?
sole proprietorship
partnership
corporation
cooperative
Suppose a firm that makes appliances merges with a company that produces running shoes, and it later also buys a dairy. What is this combination called?
franchise
horizontal merger
cooperative
conglomerate
The most competitive market structure is
perfect competition.
Oligopoly
monopolistic competition
Monopoly
The most extreme version of imperfect competition is
Black Market
Monopoly
Oligopoly
monopolistic competition.
A monopoly can best be summed up as
few producers, similar products
many producers, identical products
many producers, similar but varied products
one producer, a unique product
If the four top producers together supply more than 60 percent of the total output.
Example of Monopoly
Example of Price Controls
Example of Oligopoly
Example of Rationality
When a price ceiling is imposed in a market:
A surplus results
Sellers of the product are made better off
A shortage results
Quantity supplied is greater than the quantity demanded
Neither company has a dominant strategy
Both companies have an incentive to reduce production by %10
Both companies have an incentive to reduce production by %20
Only UA have an incentive to reduce production by %20
Only UB have an incentive to reduce production by %20
Based on the payoff matrix, which of the following is correct?
Firm A always gets a smaller share of the industry profits.
Firm A’s dominant strategy is to advertise.
Firm B’s dominant strategy is not to advertise.
The dominant strategy for both firms is not to advertise.
Neither firm has a dominant strategy.
The combination where Firm A advertises and Firm B does not advertise is Nash equilibrium because
it is best for each firm given what the other firm has chosen
the total industry profits are maximized
Firm A has an incentive to change its strategy and chooses not to advertise
it is the best outcome for Firm B regardless of what firm A does
advertising is always the best strategy for Firm A
One difference between oligopolies and monopolistically competitive markets is that
there is no deadweight loss in monopolistically competitive markets, but there is in oligopolies
the products sold in monopolistically competitive markets are identical
oligopolies have fewer barriers to entry
firms maximize profits in monopolistically competitive markets but not in oligopolies
there are fewer firms in oligopolistic markets than in monopolistically competitive ones
A business organization that is jointly owned and operated by a group of individuals for their mutual benefit
Corporation
Partnership
Nonprofit organization
Cooperative
A business owned by shareholders who have limited liability for the firm’s debt
Cooperative
Corporation
Multinational
Nonprofit
A corporation that does business in more than one country
Multinational corporation
Nonprofit organization
Business franchise
Partnership
A business owned by two or more co-owners who share profits from the business and are legally responsible for debts
Cooperative
Partnership
Nonprofit organization
Liability
A business owned and managed by one person
Business franchis
Dual ownership
Sole proprietorship
Cooperative
A new business owner may choose to set up a sole proprietorship because he or she
Makes all of the decisions
Keeps all the profits
Has to fulfill the least number of regulations
All of the answers are correct
Who does the CEO take direction from?
Corporate officers
Middle management
Board of directors
Employess
What was the last price of IBM today?
$160.70
$155.00
$158.20
$164.20
What type of stock would have voting rights?
preferred stock
common stock
chicken stock
stock stock
What types of stocks have dividends?
common stock
preferred stock
chicken stock
premium stock
What is it called when you loss money on stocks you have purchased.
capital gain
capital loss
capital of NY
corporate loss
Does a bear market mean the stock market is rising or going down?
rising
going down
staying the same
cross dimensional static drift
If I owned 100 shares or Goodyear, how much would I receive in dividends?
.40
40.00
40.00
400.00
How much did IBM's stock vary that day?
$3.20
$8.00
$165.05
$5.70
Does a bear market mean the stock market is rising or going down?
rising
going down
staying the same
cross dimensional static drift
The number of shares traded in a given time period
Volume
After-hours trading
Net Change
open
The highest price at which one share was traded over the last year
Low
52-week low
High
52-week high
Stock market transactions
After-hours trading
Volume
Net Change
Trades
