Microeconomics Unit Review

Front

What form of business organization should Heather set up to protect her assets and bring in other people to help her get started and hire people to run the business? Options: Kiosk, Partnership, Corporation, Sole Proprietorship

Back

Corporation

Front

The change seen in the graph would have been caused by: a decrease in the price of resources, a decrease in technology, an increase in business taxes and regulation, an increase in the number of consumers

Back

a decrease in the price of resources

Front

Which statement about the circular flow model is CORRECT? Businesses earn income from both the factor and product markets, Households earn income from both the factor and product markets, Households earn income from the product market and businesses earn revenue from the factor market, Households earn income from the factor market and businesses earn revenue from the product market

Back

Households earn income from the factor market and businesses earn revenue from the product market

Front

To keep up with the growing costs of production, a company raises the prices of its goods. What will occur as a result?

Back

Consumers will purchase less of the company’s products

Front

Product differentiation is MOST important in which market structure?

Back

monopolistic competition

Front

Based on the information provided, which company has greater control over the price of the goods it produces?

Back

Company X has greater control over the price of its goods than Company Y. While Company X can engage in non-price competition with other producers to increase demand for its jeans, Company Y must accept the market price for soybeans because all producers of soybeans produce identical goods.

Front

Which explains why a supply line is upward sloping?

Back

the Law of Supply states there is a direct relationship between price and quantity

Front

If, in a market, a particular store notices a lot of merchandise piling up on the shelves and in the stock room, how could they encourage existing buyers to buy the goods?

Back

Lower the prices as an incentive to purchase more

Front

What would be the situation if the price was moved from p3 to p2?

Back

There would be no supply of widgets left over

Front

Which of the following is NOT a requirement of a corporation?
payment of additional taxes,
regular ownership meetings,
creation of a company charter,
assumption of unlimited liability

Back

assumption of unlimited liability