Which is False concerning perfect competition?

suppliers can control the price of their product

What would cause a movement on the supply curve from Y to X

The price of green beans increases

What factor would cause the supply curve to shift from S2 to S1?

Nick supplies less donuts because sugar costs go up

What would cause the demand curve to shift from D2 to D1?

The price of hotdogs increases, so people buy less buns.

What factor would cause the supply curve to shift from S1 to S2?

Two additional farmers decide to grow corn.

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Economics Review Game (Unit 2)

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Unit 2 words and concepts.

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Questions 19

Answers

1
What would cause this to happen on the demand curve?
Jordans are no longer popular
Johnny's income increases
The population of Powder Springs increases
Pepsi left the soda market
2
A business with thousands of owners is called a:
partnership
sole proprietorship
multiple partnership
corporation
3
Jim decides to start a sole proprietorship. What is a negative aspect of doing this?
There is unlimited liability.
There is unlimited taxation.
There is limited liability.
Jim will have to give all of his money to the government.
4
Which is False concerning perfect competition?
the product being supplied is identical
it is easy to enter this market structure
thousands of suppliers in the market
suppliers can control the price of their product
5
What would cause a movement on the supply curve from Y to X
Consumers expect the price of green beans to decrease
The price of green beans decreases
The price of green beans increases
An increase in income for the average American
6
What factor would cause the supply curve to shift from S2 to S1?
The price of donuts increases
Nick supplies less donuts because sugar costs go up
More people move to the community so they demand more donuts
John's income goes up, so he demands more donuts
7
McDonald's and Burger King would be part of what market structure?
Monopoly
Monopolistic Competition
Oligopoly
Perfect Competition
8
What would cause a movement from x to y?
Income increases, so people buy more DVDs.
DVD ownership becomes popular.
The price of DVDs decreases.
The price of DVDs increases.
9
According to the law of supply, as price decreases:
supply decreases
QS decreases
QS increases
supply increases
10
What is the equilibrium price and QD/QS in this example?
$10 and 2 QS/QD
$15 and 16 QS/QD
$25 and 9 QS/QD
$15 and 9 QS/QD
11
What would cause the demand curve to shift from D2 to D1?
The price of hotdogs increases, so people buy less buns.
The price of hot dogs decreases.
Price of hamburgers goes up so people demand more hotdogs
The price of hot dogs increases.
12
Utility companies that provide gas, water, or electricity are usually:
monopolistic competition
oligopolies
perfect competition
monopolies
13
This market structure contains a few businesses that control the entire market.
Oligopoly
Pure Competition
Monopolistic Competition
Monopoly
14
A business with two or three owners is called a:
corporation
partnership
sole proprietorship
triple corporation
15
According to the law of demand, as price increases:
QD increases
Demand decreases
QD decreases
Demand increases
16
The price floor on the graph would create a:
surplus
quadruple shortage
equilibrium
shortage
17
There is always limited liability for a stock holder in a corporation
False
True
18
What factor would cause the supply curve to shift from S1 to S2?
The price of corn increases
Two additional farmers decide to grow corn.
The price of corn decreases
Consumers view corn as an unhealthy vegetable
19
The line drawn at $30 would be an example of:
surplus
price ceiling
equilibrium
price floor

Economics Review Game (Unit 2) Flashcards | StudBud