Eco U2L2-4 Quiz Practice

Based on the information in the graph and the table, what is the equilibrium price of pizza?

• $2.00

• $4.00

• $3.00

• $5.00

One of the advantages corporations have that sole proprietorships do not is —

• limited liability

• ease of start up

• rights to all profits

• lack of special taxes

Which of the following best completes the diagram?

• Characteristics of Partnerships

• Characteristics of Free Enterprise

• Characteristics of Sole Proprietorships

• Characteristics of Corporations

Which of the following is described by the characteristics listed below?

- One seller

- Complete barriers to market entry

- No production differentiation

• Monopoly

• Oligopoly

• Pure competition

• Monopolistic competition

What type of market structure is described by the information in the box?

• Oligopoly

• Natural monopoly

• Pure competition

• Monopolistic competition

The market structure of pure competition is distinctive because —

• only one seller is needed in this market structure

• there are no examples of this type of market structure

• the sellers in this market structure have no control over price

• there are large number of barriers to entry into this market structure

Maria raised the price of the most popular pair of jeans in her clothing store. Two weeks later, she was surprised to learn that she did not sell any jeans at the new price. Considering the law of demand, why did Maria sell fewer jeans when she increased the price?

• The quality of the jeans declined.

• The cost of producing the jeans increased.

• The market is slow to adjust to price changes.

• The consumers were less able or willing to pay.

Ivanka Trump closed her fashion brand, after boycotts from consumers following her father's election. The brand was a target of the Boycott Trump campaign due to Ivanka's links with the President and her own role as a senior adviser. According to the Wall Street Journal, which cited research from Rakuten Intelligence, online sales of the brand at Amazon, Macy's and Bloomingdales fell almost 45% in the year to June. Several retailers also dropped the brand. —https://www.ethicalconsumer.org/ (accessed, December 2019)

This scenario is an example of how a shift in demand can be created by —

• higher prices

• profit motive

• laissez-faire policies

• a non-price determinant