OCS Economics - Microeconomics

What makes entering a monopoly or oligopoly more difficult to enter than a perfect competition?

• Existing companies lower prices to drive new members out

• government regulation

• Higher start up cost

• Lots of companies selling a large variety of similar

Which of the following is true about a shareholder in a corporation?

• A shareholder is part owner of that business

• A shareholder may not share in the earnings of that corporation.

• A shareholder may not transfer his share to another party without permission.

• A shareholder is liable for any debts accrued by that company

The minimum wage is a type of*

• price floor

• price ceiling

• marginal cost

• comparable worth

Which of the following is an example of a microeconomic decision?

• how many hours an employee should work each week

• whether to increase or decrease the money supply

• how to reduce the unemployment rate

• whether to increase or decrease taxes

The 3 types of businesses are

• market, resource, production

• market, command, traditional

• monopoly, monopolistic, oligopoly

• sole proprietor, partnership, corporation

Which type of business is the easiest to start?

• sole proprietorship

• partnership

• cooperative

• corporation

Food Lion is an example of a ______________________.

• corporation

• sole proprietorship

• partnership

King’s Cleaning is an example of a ________________.

• sole proprietorship

• partnership

• corporation

Disney is an example of a ________________.

• conglomerate

• partnership

• sole proprietorship

The merging of a business that sells potato chips and a business that sells shoelaces would be a considered a ___________.

• vertical merger

• horizontal merger

• conglomerate merger