Economics Unit 2 Practice for Test

The ability to attract capital investment is readily found in corporations.

Corporations get to avoid double taxation.

Disadvantages of partnerships include:

Payments that firms makes to the factor market include:

In the circular flow, businesses and firms give what to the government?

Price, wages, and profits are all

In the circular flow diagram, firms receive _______from the factor market.

Who usually pays for the results of externalities?

Households provide the demand for the factor market.

Owning your own business can create

If the revenue for 1,500 units is $16,000 and the cost was $15,000, the profit is:

When profits are increased, we expect that more firms will enter the industry.

Household provide the supply and demand for both the factor and goods and services markets.

When there is an easy in and out of industries competition is more likely to occur.

Economic incentives can be

Franchises have little to no start up costs.

Double taxation is a drawback of sole proprietorship.

Private ownership does not

Banks are more likely to lend money to

There is no change in control of a corporation if a stockholder owns over 50% of the stock.

The economic system that is focused on income as its main goal:

Households provide the factors for the factor market.

Consumer sovereignty guides the market for

Businesses are sellers in the ___________market.

In the circular flow, the factor market is where

Private ownership increases pride in taking care of their property.

In the circular flow diagram, firms incur costs from the __________market.

A franchisee is

The factors of production do not include:

The formula for profit includes:

Businesses must constantly examine the costs of production to maximize profit.

Unlimited liability is a disadvantage of a sole proprietorship.

A key characteristic of sole proprietorship includes:

When the expected benefit exceeds the expected cost, the behavior will continue.

An advantage of corporations includes limited liability.

Monetary incentives include

Businesses provide the supplies for the product market.

An economic incentive includes:

In the circular flow, firms receive money from the _______________for their merchandise.