Chapter 7 & Chapter 8 Test

​To get a picture of a business’s overall expenses and profits, you should look at its

• ​inventories.

• depreciation

• ​dividends.

• ​income statement.

​When a factory pollutes a river, the resulting water pollution is an example of a ______

• ​technological monopoly

• ​public good

• ​negative externality

• ​neutral spillover effect

By promoting transparency, the government can improve _____​

• ​market efficiency.

• ​economies of scale.

• ​profit margins.

• ​zoning.

A nonprofit organization that provides services to its members is called a

• ​consumer co-op.

• ​producer co-op.

• ​market co-op.

• ​service co-op.

​The Sherman Act, the Clayton Act, and the Federal Trade Commission Act were all designed to ______

• ​ensure competition.

• ​promote trusts.

• ​create public goods.

• ​extend mortgages.

​Which of the following factors contribute to market failure?

• ​adequate competition

• ​knowledge of prices and opportunities

• ​mobility of resources

• ​inadequate competition

A venture capitalist’s main goal is usually to​

• ​help individuals achieve their dreams.

• ​help their communities.

• ​get a good return on an investment.

• ​teach entrepreneurs managerial skills.

​A business run by a single person is a

• ​partners​hip.

• ​corporation.

• ​sole pro​prietorship.

• limited liability coporation

Limited life applies to ​

• ​corporations.

• ​multinationals.

• ​nonprofit organizations.

• ​sole proprietorships.

Which of the following is a noncash charge?​

• wages

• ​depreciation

• ​depreciation

• ​horizontal merger