Unit 3 test Economics Chapters 7-8 10-11

When a factory pollutes a river the resulting water pollution is an example of an:

• Competition
• Monopoly
• Negative Externality
• Neutral Spillover

When a stadium promises to bring jobs and residents to a city this is known as a:

• Positive Externality
• Negative Externality
• Competition
• Neutral Spillover

What bonds are Tax-Exempt?

• Municipal Bonds
• Junk Bonds
• Corporate Bonds
• Doge Bonds

What is an example of a public good?

• Roads
• Army
• Public Schools
• All of the Above

What condition is NOT necessary for Pure Competition?

• Very Large Numbers
• Identical Products
• Correct Zoning
• Freedom of Entry-Exit

What is the big disadvantage to a sole proprietorship?

• All the decisions
• All the Profits
• All the liability

What is the biggest advantage to a sole proprietorship

• All the decisions
• All the Profits
• All the liability

A company with four or more businesses that make unrelated products is called a:

• Horizontal Merger
• Vertical Merger
• Conglomerate
• Multinational

Which of the following is one of the three functions of money?

• portability
• scarcity
• store of value
• divisibility

Which of the following is an example of a barter system?

• Instead of paying rent, you clean the house for the owner.
• Instead of paying rent with cash you use apple pay.
• Instead of paying full amount for car you pay with 10 monthly installments.
• Instead of paying for a vacation in cash you use Bitcoin