ECO 105 Week 3 Quiz | Assignment Help | Wilmington University

ECO 105 Week 3 Quiz | Assignment Help | Wilmington University 

Question 1

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.



Question 2

A market where there is only one seller, and buyers have no good alternative, is called a(n):


o   oligopoly.

o   oligarchy.

o   monopoly.

o   perfect completion market.



Question 3

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



Question 4

Among industrialized countries, the United States has one of the __________ public sectors, as a percentage of government spending and the economy.

o   smallest

o   largest

o   fastest-growing

o   slowest-growing



Question 5

An example of an oligopoly is the:

o   airline industry.

o   local 7-eleven.

o   local car wash.

o   local attorney.



Question 6

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.




Question 7

 Between 1961 and 1972, the federal government spent as much on ______ as it did on building highways.


o   welfare

o   Medicare

o   crop subsidies

o   space exploration


Question 8

Disadvantages of government intervention include:


o   achieving desirable goals.

o   lower taxation.

o   incentive problems.

o   reduced regulation.




Question 9

If two or more oligopolistic companies work together to keep their prices high and split the market between them, this is called:


o   occlusion.

o   collusion.

o   profit splitting.

o   market sharing.



Question 10

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.


Question 11

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.



Question 12

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.




Question 13

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.


Question 14

Natural monopolies have been slowly eaten away by:


o   perfect competition.

o   technological change.

o   market imbalances.

o   rising costs.


Question 15

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.



Question 16

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.



Question 17

The Federal Trade Commission is responsible for enforcing:


o   health care.

o   anti-trust law.

o   interstate commerce.

o   communications law.



Question 18

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.


Question 19

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.




Question 20

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.



Question 21

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.



Question 22

The local department store used to be ___________ before technological change.


o   a monopoly

o   a perfect competitor

o   an oligopoly

o   a natural monopoly




Question 23

The original research that culminated in the Internet was sponsored by:


o   Al Gore.

o   Microsoft.  

o   NASA.

o   the Defense Department.


Question 24

The unintentional impact that the actions of an individual can have on others is called an:

o   externality.

o   individual market impact.

o   individual metric.

o   individual elasticity.



Question 25

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


Question 26

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



Question 27

Which of the following is NOT a public good?


o   Police  

o   Fire protection

o   Primary and secondary education

o   Business incubator sites



Question 28

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





Question 29

______ is paid communication with potential customers in a public medium, such as newspapers and television.



o   Journalism  

o   Advertising

o   Public Relations

o   Brand identification



Question 30

___________ 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





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