What do all types of monopolies have in common?

a single seller that controls an entire market

What happens to price, quantity, and profit when a competitive market becomes a monopoly market with a patent?

Price increases, Quantity decreases, and profits increases

Which of the following is a potential disadvantage of multinational corporations?

They have an undesired influence on politics and culture in other countries

Which of the following is a reason that companies engage in offshoring?

Labor costs may be lower in some other countries

What determines the equilibrium wage of labor?

The supply of workers in a labor market meets the demand for workers.

Which of these describes an action an employer may take to reduce the cost of wages?

substituting workers for machines

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Econ chapters 4-5 test

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Questions 17

Answers

1
If an advertising business buys new computers for its employees, how might its productivity of labor be affected?
It would decrease.
It would stay the same
It would increase.
Who knows really....
2
What generally happens to the equilibrium wage when demand for workers is low and supply is high?
It gets lower
It gets higher.
3
What do all types of monopolies have in common?
a single seller that controls an entire market
government action to ensure that prices don’t get too high
economies of scale
a unique product to sell
4
Why have average real wages decreased in the last couple of decades?
Greater competition
The increase use of temporary work
Deregulation of many domestic workers
all of the above
5
What happens to price, quantity, and profit when a competitive market becomes a monopoly market with a patent?
Price decreases, Quantity increases, and profits increases
Price increases, Quantity decreases, and profits decreases
Price increases, Quantity decreases, and profits increases
Price increases, Quantity increases, and profits increases
6
Real average wages have increased for most Americans in the last couple of decades
True
False
7
Which of the following is a potential disadvantage of multinational corporations?
They sell stocks and bonds in other countries.
They have an undesired influence on politics and culture in other countries
They provide jobs in other countries.
They spread new technologies to other countries.
8
What generally happens to the equilibrium wage when demand for workers is low and supply is high?
It moves below demand.
It gets higher.
It gets lower.
It does not change.
9
Which of the following is a reason that companies engage in offshoring?
Labor costs may be lower in some other countries
The cost of building factories is more in other countries
Factories in some countries may utilize newer technology
Educational op. for workers may be more in other countries
10
If an advertising business buys new computers for its employees, how might its productivity of labor be affected?
Who knows really....
It would increase.
It would stay the same
It would decrease.
11
Which two market structures have relatively high barriers to entry?
monopolistic competition and oligopoly
monopoly and monopolistic competition
pure competition and monopolistic competition
oligopoly and monopoly
12
Consumers benefit from purely competitive market structures due to the low price and high availability.
True
False
13
What determines the equilibrium wage of labor?
The supply of workers in a labor market exceeds the demand for workers.
The demand for workers in a labor market exceeds the supply.
The supply of workers in a labor market meets the demand for workers.
The demand for workers in a labor market is less than the supply.
14
Which of the following industries is most likely to exist in a purely competitive market?
Computers
Bottled Water
Wheat
Shoes
15
Which of these describes an action an employer may take to reduce the cost of wages?
substituting workers for machines
outsourcing jobs to another country
hiring permanent, rather than temporary, workers
including featherbedding jobs in union contracts
16
Which of the following is an example of a natural monopoly?
a construction company
A supermarket chain
a subway system
An automobile manufacturer
17
Disadvantages of franchises include
all of the above
limited choices/decision making
high fees
strict rules

Econ chapters 4-5 test Flashcards | StudBud