Unit 2 Review

In a socialist economy, what determines how basic economic questions are answered?

• government

• products

• resources

• retailers

What economy is based on public or governmental ownership of the production and distribution of goods?

• capitalist

• mixed

• socialist

• traditional

Which factor is a barrier to small-business and entrepreneurial success?

• poor management

• no vision for expansion

• having a clear strategic vision

• having a surplus of employees

What is the name for markets with only a few sellers, such as the markets for automobiles, pharmaceuticals, or oil?

• oligopolies

• monopolies

• perfect competition

• monopolistic competition

In 1890, Congress passed a law that prevents monopolies from forming and hinders price fixing. What law is this?

• Clayton Act

• Robinson-Patman Act

• Sherman Antitrust Act

• Celler-Kefauver Antimerger Act

Negative events which an organization or company has no control over are:

• debits

• credits

• speculative risks

• pure business risks

A market structure that features no barriers to entry and has an unlimited number of businesses selling the same products is a/an:

• oligopoly

• perfect competition

• regulated monopoly

• monopolistic competition

The economic resource where people work to produce goods or services are:

• capital goods

• human resources

• natural resources

• noneconomic goods

A large retailer wants to contribute to the well-being of society. It donates 10% of its proceeds to a charity that helps the environment. The retailer is demonstrating:

• e-tailing.

• wholesaling.

• social responsibility.

• voluntary merchandise.

A business that buys goods or services and sells them to the ultimate consumer is a:

• manufacturer.

• producer.

• retailer.

• wholesaler.