Unit 2: The Market and Trade

Question 1

Advertising the brand name and special features of a product rather then price is __________ competition.

Accepted Answer

non-price

Question 2

Which of the following would shift the demand curve for new textbooks to the right?

Accepted Answer

an increase in college enrollments

Question 3

Price and Supply are directly (positively) related

Accepted Answer

True

Question 4

Which of the following best describes the law of demand?

Accepted Answer

As the price of DVD's rises, fewer DVD's are rented

Question 5

_________ exists when a single firm controls the total production or sale of a product.

Accepted Answer

pure monopoly

Question 6

A decrease in the price of DVD players, a demand curve for DVD's would result in:

Accepted Answer

increase in demand (shift right/ increase)

Question 7

All are features of a sole proprietorship except...

Accepted Answer

sells stock to increase capital

Question 8

The demand curve for videos has shifted to the right. What could have caused it?

Accepted Answer

an increase in the income of buyers

Question 9

A sole proprietorship is most likely run by...

Accepted Answer

an individual or family

Question 10

Decrease in the price of movie tickets; Demand curve for DVD's

Accepted Answer

decrease in demand (shift left/ decrease)

Question 11

Intended to provide consumers with information on quality, and special features of products

Accepted Answer

informative advertising

Question 12

A monopoly owned & operated by any level of government

Accepted Answer

government

Question 13

Given a supply curve for armchairs, when price of armchairs increases the:

Accepted Answer

quantity supplied increases

Question 14

This monopoly occurs when a firm is the only producer in a specific location

Accepted Answer

geographic

Question 15

Tries to persuade consumers that the product being advertised in better than substitute goods

Accepted Answer

competitive advertising

Question 16

If the price of mozzarella cheese declines (an ingredient in pizza), there would be:

Accepted Answer

an increase in the supply of pizza

Question 17

A surplus of a good means the price is too low and must go up to get back to equilibrium.

Accepted Answer

False

Question 18

Exists when a FEW producers dominate the production of similar but differentiated products

Accepted Answer

pure oligopoly

Question 19

Unlimited liability for sole proprietors means that...

Accepted Answer

they can lose everything is their business fails

Question 20

This type of monopoly occurs when a firm develops new technology to create a entirely new product

Accepted Answer

technological

Question 21

Decrease in the price of DVD rentals; Demand curve for DVD's

Accepted Answer

Increase in quantity demanded (move right along the curve)

Question 22

A technological advance in the production of automobiles will:

Accepted Answer

increase the supply of automobiles

Questions 22