Businesses & Macro Part 1

What distinguishes an oligopoly from perfect competition?

• The absence of government regulation

• Fewer large firms dominating the market

• The presence of unlimited pricing power

• A lack of product differentiation

The soda industry is often considered an oligopoly because:

• It has a single seller.

• It operates under natural monopoly conditions.

• A few large companies dominate the market.

• It has high barriers to entry.

Which of the following contributes to GDP?

• A new highway built by the government

• A used car sold between individuals

• A company's purchase of shares in the stock market

• Transfer payments like unemployment benefits

A sole proprietorship is:

• Owned by multiple individuals

• Owned and managed by one person

• A business model with unlimited liability for shareholders

• Always incorporated

Which business type is characterized by two or more owners sharing profits and liabilities?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

The owners of a corporation are its:

• Employees

• Shareholders

• Managers

• Customers

Frictional unemployment occurs when:

• Workers are replaced by technology.

• People are temporarily between jobs.

• Jobs are lost due to economic downturns.

• Workers experience seasonal layoffs.

What type of unemployment is caused by changes in technology?

• Frictional

• Structural

• Cyclical

• Seasonal

When two airlines merge, this is an example of a:

• Vertical merger

• Horizontal merger

• Conglomerate merger

• Market extension merger

A conglomerate merger involves:

• Merging companies in the same industry.

• Companies at different stages of production.

• Unrelated businesses combining.

• A merger to create a monopoly.