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Economics Unit 1 and Unit 2 Flashcards | StudBud
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Economics Unit 1 and Unit 2
Economics Unit 1 and Unit 2
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1
What is a sole proprietorship?
financed through the sale of stock
owned and organized by two or more people
owned and operated by one person
operated as a nonprofit
2
Monopoly means...
A single firm producing a product for which there are no close substitutes
A standardized product being produced by many firms
any market in which the demand is greater than the resources available
A large number of firms producing a differentiated product
3
What is the basic economic problem?
unlimited resources and unlimited wants
unlimited resources and limited wants
limited resources and limited wants
limited resources and unlimited wants
4
Double taxation, first on corporate profits and second on dividends to stockholders is a disadvantage to...
partnerships
non-profit
sole proprietorships
corporations
5
Macroeconomics addresses national trends and employment.
False
True
6
Non-price competition refers to
Competition between uses of products in an industry
advertising, product promotion and changes in characteristics of a product
Reduction in production costs
Price increases ignored by rivals
7
When the owner of a business has unlimited liability he/she is personally responsible for all business debts
True
False
8
A type of market structure with few firms sell basically the same product and have some power to influence price.
Oligopoly
Competition
Monopoly
Factor/Resource market
9
What is the concept of opportunity cost?
The cost of getting into college
Being paid for work done at your home
What you wish you could have done but not allowed
Costs associated with what you would have gained had you chosen differently
10
What could shift the economy's PPC to the left?
Law requiring mandatory retirement from the labor force at 55
Increase in total output
Discovery of a low-cost means of generating electricity
More women enter the work force
11
A monopoly is the most difficult industry structure for the entry of new firms.
True
False
12
Under competition, product prices are set by the market relationship between buyers and sellers.
False
True
13
The arena of exchange in which firms purchase the factors of production from households.
Resource market
Monopoly market
Product market
Government market
14
What does the PPC illustrate?
The is no scarcity in a perfect world
The economy will function efficiently
Economic production possibilities have no limit
All resources used efficiently and to produce more means less of another
15
Which of the following is a barrier to entry?
All answers are barriers
Copyrights and patents
High capital costs
Geography
16
Scarcity is a problem associated only with the poor nations of the world.
True
False
17
What could shift the PPC to the right?
Technological development
Shifting priorities
Increase in consumer demand
Decline in the size of the population and labor force
18
What does it mean if a business is characterized by having a limited life?
The business has a 3-5 year permit from the IRS
The business was created for one task or reason
The busines is subject to tariffs
The business can end due to the death or change in owner
19
What is the opportunity cost of moving from point B to point D
Guns given up
Guns gained
Butter gained
Butter given up
20
What type of economic system best describes countries like North Korea and the former Soviet Union?
Capitalist economy
Socialist economy
Free Enterprise System
Communist economy
21
A type of market structure which one firm sells a unique product and exercises control over price by controlling supply
Competition
Oligopoly
Monopoly
Factor/Resource market
22
What type of business has the most difficulty raising funds to expand?
corporations
sole proprietorship
non-profit
partnerships
23
A market structure which many firms sell products based on price and no one firm controls the price.
Factor/Resource market
Competition
Monopoly
Oligopoly
24
What are the factors of production?
rent, wages, profits and revenue
labor, land, capital and factory
entrepreneurship, labor, partner and capital
land, labor, capital and entrepreneurship
25
Which type of business should a person invest if they don't want to make day-to-day decisions or lose personal property?
Cartel
Partnership
Corporation
Sole proprietorship
26
What type of economic system does the United States?
Communist economy
Democratic economy
Capitalist economy
Socialist economy
27
A dividend is a share of profits distributed to the stockholder
False
True
28
Point B in the graph represents a combination of guns and butter that
can only be produced if a technological advance occurs
can be produced only if all resources are used fully and efficiently
can be produced without using all of the country's resources
is impossible for this country to produce with existing resources
29
R.A.C.E. writing means
Restate, Answer, Cite, Explain
Restate, All, Critical, Explain
Restate, Allow, Critical thought, Explain
Rewrite, Answer, Cite, Elaborate
30
The arena of exchange in which households purchase products from firms
Government market
Product market
Resource market
Monopoly market
31
What kind of monopoly does the granting of patents encourage?
legal monopoly
technological monopoly
Public monopoly
geographic monopoly
