All of the following are characteristics of perfectly competitive markets EXCEPT

The firm's prices are kept confidential

According to the law of supply, the higher the price:

The larger the quantity produced

In terms of raising funds, the main difference between a corporation and other business types:

They can sell shares of the company to the general public

Which of the following does NOT describe an oligopoly?

All firms have identical products

studbud

Benchmark Review #1

11 termsStudBud Administration36 plays

Imported from external platform

Flashcards11 cardsFPractice quizPHost liveL

Questions 11

Answers

1
This is where businesses buy productive resources
Product Market
Supplier Market
Factor Market
Consumer Market
2
Logan faces choice A, B, and C.His decision to go with C instead of A or B is bestdescribed as?
A trade off
An opportunity cost
A bad bargain
A catch 22
3
What is a price above equilibrium called and what effect does it have?
price ceiling; shortage
price ceiling; surplus
price floor; surplus
price floor; shortage
4
Entrepreneurs accept the risk of opening a new business because they want to
Set their own salary
Have a secure job
Serve the community
Earn a profit
5
A market that has few barriers to entry and includes differentiated products is described as?
Oligopoly
Monopoly
Pure Competition
Monopolistic Competion
6
All of the following are characteristics of perfectly competitive markets EXCEPT
There are no barriers to entering the market
The firm's prices are kept confidential
There is a large number of buyers and sellers
Products are identical to one another
7
According to the law of supply, the higher the price:
The more consumers are willing to pay
The larger the quantity produced
The smaller the quantity produced
The more availability of the good produced
8
In terms of raising funds, the main difference between a corporation and other business types:
They obtain loans from banks
They always have collateral that other businesses do not
They make easier decisions about whether to seek a loan
They can sell shares of the company to the general public
9
Which of the following does NOT describe an oligopoly?
All firms have identical products
High capital costs make market entry difficult
A few large firms dominate the market
When one firm changes t he price, the others follow suit
10
This is where households buy goods and services
Supplier Market
Factor Market
Consumer Market
Product Market
11
A business consisting of four owners in which each shares in the profits and risks would be a
Partnership
Major corporation
Franchise
Sole proprietorship

Benchmark Review #1 Flashcards | StudBud