LIFE ECON Test #2 Study Quiz

What is the largest source of U.S personal income?

• Agriculture

• Jobs

• Transfer Payments

• Inherited Money

What are transfer payments?

• Money that is transferred to you from your job.

• Money that is transferred to you from your parents.

• Payments from the government for doing no work.

• Payments from the government from doing work.

What is the largest source of transfer payments?

• Social Security

• Veteran's Benefits

• Teacher Retirement

• Food Stamps

What is the difference between a durable and non-durable good?

• A durable good lasts for longer than one year.

• A non-durable good lasts for longer than one year.

• A durable good can be hit by a truck and still work.

• A non durable good can be hit by a truck and still work.

Which of the following is not a trait of a proprietorship?

• One Owner

• No Liability

• Unlimited Liability

• Difficulty Raising Money

• Independent Decision Making

What does unlimited liability mean?

• If you cannot pay a debt as a business, your personal items can be seized to pay that debt.

• If you cannot pay a debt as a business, you will go to jail.

• If you cannot pay a debt as a business, the mafia will hunt you down.

• If you cannot pay a debt as a business, you will need to get a loan from the bank.

What types of businesses have unlimited liability?

• Proprietorship, Partnership

• Partnership, Corporation

• Corporation, Proprietorship.

• Proprietorship

What is a conglomerate merger?

• A corporation acquires another corporation that produces unrelated goods and services.

• A corporation acquires another corporation that supplies its inputs or distributes its products.

• A corporation acquires another corporation that competes in the same market.

What is a vertical merger?

• A corporation acquires another corporation that supplies its inputs or distributes its products.

• A corporation acquires another corporation that competes in the same market.

• A corporation acquires another corporation that produces unrelated goods and services.

What is a horizontal merger?

• A corporation acquires another corporation that competes in the same market.

• A corporation acquires another corporation that supplies its inputs or distributes its products.

• A corporation acquires another corporation that produces unrelated goods and services.