ECON: Unit 3: Business Organizations, Market Structures, Gov't Taxes & Spending

Question 1

Which market structure has the smallest profit margin and is most competitive?

Accepted Answer

Pure/Perfect Competition

Question 2

name given to a group when a large number of producers work together to restrict trade.

Accepted Answer

cartel

Question 3

an advantage of a corporation

Accepted Answer

unlimited life

Question 4

A partnership has greater access to financial capital than a sole proprietorship because....

Accepted Answer

Each partner invests money into the partnership.

Question 5

A firm that makes one product but owns plants in many diff stages of the production process

Accepted Answer

vertical

Question 6

FICA includes taxes to pay for

Accepted Answer

Social Security and Medicare

Question 7

which type of business organization incurs double taxation

Accepted Answer

corporation

Question 8

Which of the following is NOT a way that monopolistic competition differs from pure competition

Accepted Answer

many sellers

Question 9

Which type of market structure has many well informed buyer and sellers of identical products?

Accepted Answer

Pure competition

Question 10

A major reason for forming a conglomerate is....

Accepted Answer

diversification of products

Question 11

local governments raise revenue is through

Accepted Answer

property taxes

Question 12

keeps a person’s individual income tax from increasing because of inflation

Accepted Answer

Indexing

Question 13

Which business structures have unlimited liability?

Accepted Answer

sole proprietorship & partnership

Question 14

The private sector is composed of

Accepted Answer

individuals and businesses

Question 15

Businesses in an oligopolic competition choose to compete against each other in what way?

Accepted Answer

on a non-price basis

Question 16

The gov't uses this to grant a technological monopoly in order to protect intellectual property

Accepted Answer

copy right

Question 17

The market failure that keeps people from knowing how to best use their scarce resources is...

Accepted Answer

inadequate information

Question 18

monopoly based ownership or control of a mfg method, process, or other scientific advance

Accepted Answer

technological monopoly

Question 19

This business structure sells identical products.....

Accepted Answer

Pure/Perfect Competition

Question 20

NOT a public good

Accepted Answer

movie theater

Question 21

market structure has complete control over the price of their product

Accepted Answer

<p>monopoly</p>

Question 22

When no other co has decided to compete w/ the business in a given area they have a __ monopoly

Accepted Answer

geographical

Question 23

This type of company would be least affected by a reduction in demand for a product it produces

Accepted Answer

conglomerate

Question 24

an example of a transfer payment

Accepted Answer

Medicare and medicaid

Question 25

total amount of money borrowed over time by the government

Accepted Answer

National debt

Question 26

To break up or regulate monopolies the government uses.....

Accepted Answer

antitrust legislation

Question 27

Which of the following is NOT a reason for companies to merger?

Accepted Answer

hide corporate losses

Question 28

When you buy common stock in a large corporation, you have.......

Accepted Answer

bought part ownership in the corporation

Question 29

Compared to other forms of business, the major disadvantage of a sole proprietorship is........

Accepted Answer

lack of expertise in different areas

Question 30

One advantage of being a shareholder in a corporation is having......

Accepted Answer

limited liability in case of bankruptcy

Question 31

Taxes adversely affect the allocation of resources in society

Accepted Answer

gov't not the market decides how the money is to be spent

Question 32

benefit principle of taxation

Accepted Answer

those who benefit from gov't services should pay for them

Question 33

This type of company would be least affected by a reduction in demand for a product it produces

Accepted Answer

conglomerate

Question 34

Businesses agree to coordinate their decisions in a manner that restricts competition it is

Accepted Answer

collusion

Question 35

All of the following are business you might find in an oligopolistic market structure EXCEPT

Accepted Answer

nail salon

ECON: Unit 3: Business Organizations, Market Structures, Gov't Taxes & Spending

Questions 35

ECON: Unit 3: Business Organizations, Market Structures, Gov't Taxes & Spending

Questions 35