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Market Structures and Economic Principles

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

What is the name for markets with only a few sellers, such as the markets for automobiles, pharmaceuticals, or oil?

a)

Oligopolies

b)

Monopolies

c)

Perfect Competition

d)

Monopolistic Competition

2.

What is the economic basis for the private enterprise economic system?

a)

Competition

b)

The Marketplace

c)

The motive of profit

d)

Manufacturer supply chain

3.

Competition helps create a healthy society by:

a)

Creating new jobs

b)

increasing the money supply

c)

making new government regulations

d)

replacing small businesses with large businesses

4.

Elastic demand is more likely when the good is:

a)

A luxury

b)

imported

c)

lower price

d)

inexpensive

5.

Gasoline prices increased 30 cents per gallon. Raylee continued to purchase gasoline because her demand and need to commute to work had no changed. This is an example of what type of demand?

a)

complementary

b)

discretionary

c)

elastic

d)

inelastic

6.

Deciding to stay home and study, instead of going to a basketball game, is an example of a/an:

a)

capital good.

b)

trade off.

c)

economic service.

d)

economic want.

7.

ABC corporation bought a new conveyor belt. What type of good is the conveyor belt?

a)

natural good

b)

public good

c)

consumer good

d)

capital good

8.

In 1890, congress passed a law that prevents monopolies from forming and hinders price fixing. What law is this?

a)

clayton act

b)

sherman antitrust act

c)

robinson-patman act

d)

celler-kefauver antimerger act

9.

A characteristic of an economic service is that it is:

a)

Useful

b)

Tangible

c)

Nontransferable

d)

Free to everyone

10.

The brooks Company produces sneakers and studies trends in the marketplace to price their sneakers. The Brooks Company supplied as many sneakers as consumers demanded to create which market condition?

a)

Equilibrium

b)

Rationing

c)

Shortage

d)

Surplus

11.

What is a want that can be satisfied by spending money to consume a good, service, or leisure activity?

a)

Economic

b)

Limited

c)

Noneconomic

d)

Unlimited

12.

The economic system that adopts the fewest new ideas or improvements is:

a)

Communist

b)

Market

c)

Socialist

d)

Traditional

13.

The economic system that adopts the fewest new ideas or improvements is:

a)

market

b)

socialist

c)

communist

d)

traditional

14.

In some places, a company can have exclusive control of supply of a good or service such as the trash service. this is an example of :

a)

price competition

b)

a regulated monopoly

c)

price discrimination

d)

non price competition

15.

R & R Real estate company buys errors and omissions liability insurance. What form of risk management is this

a)

transfer

b)

avoidance

c)

reduction

d)

retention

16.

In the human resource management process, what is the first task to be completed for staffing

a)

recruiting

b)

screening and selecting applicants

c)

determining need

d)

determining job descriptions

17.

what is the primary reason customers give for not returning to a business?

a)

lack of available parking

b)

lack of advertised merchandise

c)

lack of courtesy from salespeople

d)

lack of customer-service personnel

18.

which behavior best describes the primary business activity of operations

a)

hiring qualified employees

b)

planning for future success

c)

producing goods and services

d)

keeping accurate financial records

19.

why is information management necessary for strategic information in a business?

a)

to write an annual report

b)

to make long term decisions

c)

to create sales presentations

d)

to develop a short term advertising campaign

20.

which is a true statement about making promises to customers?

a)

it is better to over-deliver

b)

it is better to over-promise

c)

customers do not remember broken promises

d)

businesses should not make promises to customers

21.

when Caring Companions and Smiling Pets merged two years ago, what was the most likely effect on the primary business activities of both companies?

a)

all of the primary business activities were unaffected

b)

each primary business activity became two smaller business activities

c)

all of the primary business activities combined into two distinct activities

d)

each primary business activity combined with the matching activity of the other firm

22.

shannon is the manager and he ensures proper work effort by setting:

a)

job standards

b)

diversity quotas

c)

hiring objectives

d)

expense budgets