WorksheetsEcon Unit 3 Exam
Total questions: 35
Worksheet time: 4hrs 45mins
What type of business organization is owned and managed by a single individual?
General Partnership
Limited Liability Partnership
Closely held corporation
Sole Proprietorship
Which type of business organization has the advantage of shared decision making and specialization?
Closely held corporation
Sole Proprietorship
Limited Liability Partnership
Publicly held corporation
What is the main advantage of a corporation in terms of liability for owners?
Limited liability
Unlimited liability
Potential loss of control by the founders
Double taxation
What type of merger involves two or more firms competing in the same market with the same good or service?
Horizontal Merger
Conglomerate
Vertical Merger
Multinational Corporation
What type of business organization grants the exclusive right to sell a certain product or service in a given area?
Nonprofit Organization
Professional Organization
Franchise
Cooperative
Differentiation is _________________.
having identical products.
copying another business.
small differences that make your product unique.
having control of the market value.
Fast food restaurants are an example of _______________.
differentiation.
monopolistic competition.
pure / perfect competition.
monopolies.
The 4 conditions for a purely / perfectly competitive market are:
The products are identical.
Buyers know a lot about the product.
The sellers control the market price.
Sellers can enter and exit the market easily.
There are many buyers and sellers.
Oligopolies and monopolies are the same because ________.
They both have many buyers and sellers.
They both are the only sellers of their product.
They both have identical products.
They both have high barriers to entry.
The characteristics of a monopoly are:
Free entry and exit.
A restricted and regulated market.
One seller and that business has control the prices on the particular good.
A restricted and regulated market, and one seller and that business has control the prices on the particular good.
What is a monopoly?
A franchise is an example of a monopoly.
A monopoly refers to a sector or industry dominated by one corporation, firm, or entity.
A company that likes having competition.
A monopoly is an international corporation.
An arrangement in which a parent company, or franchiser, distributes its products or services
Corporation
Business Franchise
Cooperative
Partnership
A business organization that is jointly owned and operated by a group of individuals for their mutual benefit
Corporation
Partnership
Nonprofit organization
Cooperative
How does the government break up and prevent monopolies?
Increased Taxes
Antitrust legislation and regulation
Deregulation
Laissez-faire
The game console industry is an example of which market structure?
Monopoly
Pure Competition
Oligopoly
Monopolistic competition
How might an oligopoly control prices?
Collusion
Price leadership
Nonprice competition
All of the above
Which of the following describes the selling of the same product to different consumers at different prices?
Price discrimination
Interdependent Pricing
Price competition
The Price is Right with Bob Barker
Under pure competition, products are
always cheap
differentiated
accurately priced
identical
When sellers secretly agree to set production levels or prices, it is called
collusion
manipulation
price leadership
cartel
What kind of monopoly often provides public goods?
Natural Monopoly
Geographic Monopoly
Government Monopoly
Technological Monopoly
What are zoning laws?
Laws that allow zone defense
Local regulations that specify where certain types of economic activity can exist
Laws that allow public utilities to be monopolies
Deregulation at the local level
Which of the following industries is an example of a monopoly?
utilities/water
department stores
auto industry
commercial airlines
What is income?
the amount you spent
the amount you don't save
money that you earn
A plan for how to manage your money is called a ?
income
budget
investment
