Flashcard -- SSEMI1 and SSEMI3

Front

What kind of business does Amy own? Amy is excited because she just opened her own consulting firm. Amy loves being her own boss and not having to consult with anyone else before she makes decisions.  Eventually, she even hopes to incorporate and enjoy some additional tax advantages. The only downside is that she has invested all the money herself.  If the business fails, she could go bankrupt.

Back

Sole Proprietorship

Front

Which of the following is TRUE regarding households, businesses, and government in the US economic system? Options: Households pay taxes to the government but businesses dont, Households act as consumers while government and businesses act only as producers, The three are economically interdependent on one another, Government regulates what businesses can produce but not what consumers can buy

Back

The three are economically interdependent on one another

Front

An industry dominated by a few large firms is

Back

Oligopolistic

Front

Darren owns his own plumbing business. He spends some of his company's profits on new pipes and tools.  Jennifer then hires Darren and his assistant to install a new septic tank in her back yard.  Which of the following statements is  TRUE? Options: Darren is labor and Jennifer is entrepreneur, Darren is the entrepreneur, Jennifer's yard is the land, and Darren's assistant represents capital, Darren bought his tools in a factor/Resource market and Jennifer paid for his services in a product market, Darren's company represents a household

Back

Darren bought his tools in a factor/Resource market and Jennifer paid for his services in a product market

Front

What should Taylor be warned about if he starts his own firm?

Back

unlimited liability

Front

Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a

Back

Partnership

Front

What is the main difference between pure competition and monopolistic competition?

Back

Firms in pure competition are selling nearly identical, rather than differentiated goods.

Front

You walk into an office and you see a secretary typing a letter, a person fixing a computer, and an advertising executive giving a presentation. This scene is MOST RELATED to the economic concept of:

Back

Specialization

Front

Households =

Back

sellers in the factor market, buyers in the product market, consumers in the product market, all of the above.

Front

Firms =

Back

Both Businesses and Sellers in the Output market