ECO 105 Week 3 Quiz | Assignment Help | Wilmington University
A business with market power will typically:
o be more innovative than firms in perfect competition.
o force employees to work harder and longer.
o create new markets due to competitive forces.
o have lower productivity.
A market where there is only one seller, and buyers have no good alternative, is called a(n):
o perfect completion market.
A profit-maximizing monopolist will always charge _______ a perfect competitor would.
o less than
o more than
o the same as
o slightly more than cost than
Among industrialized countries, the United States has one of the __________ public sectors, as a percentage of government spending and the economy.
An example of an oligopoly is the:
o airline industry.
o local 7-eleven.
o local car wash.
o local attorney.
Assume all the restaurants in a town get together and agree to increase the price of dinner to $15 from $10. What could happen?
o Profits would decrease.
o Wholesale costs would increase.
o Fewer meals would be served.
o The town would be happier.
Between 1961 and 1972, the federal government spent as much on ______ as it did on building highways.
o crop subsidies
o space exploration
Disadvantages of government intervention include:
o achieving desirable goals.
o lower taxation.
o incentive problems.
o reduced regulation.
If two or more oligopolistic companies work together to keep their prices high and split the market between them, this is called:
o profit splitting.
o market sharing.
In perfect competition, P equals MC means:
o product equals marginal cost.
o price equals marginal competition.
o price equals marginal cost.
o product equals marginal competition.
In perfect competition, higher-cost businesses:
o thrive and grow.
o increase marginal revenue.
o tend to go out of business if unable to adjust.
o tend towards oligopolies.
Market power is:
o the combination of price and product.
o the balance between average and marginal product.
o another term for equilibrium.
o the ability to raise prices above the level that perfect competition would produce.
Monopolies generally _____________ technology and globalization.
o grow with
o thrive with
o are reduced in number by
o are unaffected by
Because of technology and globalization, the conditions that allow a monopoly to thrive generally disappear.
Natural monopolies have been slowly eaten away by:
o perfect competition.
o technological change.
o market imbalances.
o rising costs.
Rent-seeking behavior means:
o companies try to increase profit by cutting costs or improving products.
o companies spend money on influencing government, rather than on profit-increasing strategies.
o consumer studies regarding renting versus buying housing.
o a transfer of knowledge between private and public sectors.
The Federal Reserve Board is responsible for:
o maintaining adequate supervision of insurance companies.
o protecting consumers from anti-trust violations.
o supervising the financial and monetary system.
o regulating privacy issues relating to health care providers.
The Federal Trade Commission is responsible for enforcing:
o health care.
o anti-trust law.
o interstate commerce.
o communications law.
The New Deal legislation passed by President Roosevelt was caused by:
o the Irish potato famine of 1927.
o economic problems left from World War I.
o the Great Depression
o Normal business cycles.
The Philadelphia "wi-fi" municipal network was an example of:
o government intervention.
o private market economics.
o non-governmental Internet consortium.
o D.private sponsorship.
The Uniform Commercial Code governs:
o what can be broadcast on public airways.
o commercial transactions between companies and consumers.
o commercial transactions between the U.S. and foreign countries.
o international commerce transactions.
The inefficiency of taxation means that:
o governments tax only specific industries.
o taxes are applied more on consumers than businesses.
o imposing a tax on goods typically reduces the amount produced.
o imposing a tax on goods reduces prices and decreases supply.
The local department store used to be ___________ before technological change.
o a monopoly
o a perfect competitor
o an oligopoly
o a natural monopoly
The original research that culminated in the Internet was sponsored by:
o Al Gore.
o the Defense Department.
The unintentional impact that the actions of an individual can have on others is called an:
o individual market impact.
o individual metric.
o individual elasticity.
Which is an example of the government command approach?
o The growth of community banks
o Fast food franchises' growth
o Public schools
o Private college education
Which of the following is NOT a positive externality?
o Actions that benefit others
o Sharing Internet accounts
o Airport and aircraft noise
o Citizen watch groups
Which of the following is NOT a public good?
o Fire protection
o Primary and secondary education
o Business incubator sites
Which of the following is NOT an example of a barrier to entry?
o Lower costs
o Scarce land
o Extreme start-up costs
o Heavy government regulations
______ is paid communication with potential customers in a public medium, such as newspapers and television.
o Public Relations
o Brand identification
___________ is the ability to raise prices above the level perfect competition would produce by restricting the quantity supplied.
o Market power
o Monopolistic power
o Oligarchic power
o Perfect marketing