1)
in which type of business organization do the owners have the least input and decision-making on the day to day operations?
a) monopoly
b) corporation
c) partnership
d) sole proprietorship
2)
in a diagram of the circular flow of economic activity, businesses
a) receive goods and services from productive markets.
b) buy productive resources from resource markets.
c) purchase goods and services from individuals.
d) derive income from resource markets.
3)

use the graph to answer the following:

as the supply shifts from s1 to s2, what can be inferred about the quantity demanded?
a) the quantity demanded will increase.
b) the quantity demanded will decrease.
c) the quantity demanded will not be affected.
d) the quantity demanded can not be determined.
4)
for which market model is there a very large number of firms (offering the same goods for sale), which to lower costs and prices?
a) monopoly
b) oligopoly
c) perfect competition
d) monopolistic competition
5)
a utility (such as a power company) which controls all services in a designated area is called a
a) trust.
b) cartel.
c) natural monopoly.
d) devised oligopoly.
6)
sara wants to start her own business. she is not sure if she wants to be a sole proprietor or get a partner. she asks a financial adviser about the different ways in which she might finance her company. what would an adviser tell her is a disadvantage of getting a partner?
a) she is responsible for paying all shareholders.
b) she has to share all of the profits with the partner.
c) she has to go through a government application process.
d) she is responsible for all of the debts the business incurs.
7)

if the price for widgets was set at $4
a) buyers would purchase all of the available widgets.
b) producers would discover that the price was too low.
c) buyers would purchase more widgets than are available.
d) producers would discover that the price should be lowered.
8)
a new technology increases the speed of computers without increasing production costs. what is the most likely effect of this technology?
a) the price of new computers will decline.
b) the price of new computers will increase.
c) the demand for new computers will decline.
d) the demand for new computers will increase.
9)

how do individuals contribute to the circular flow of economic activity?
a) businesses buy goods and services from individuals.
b) businesses purchase productive resources in product markets.
c) individuals provide labor for factor markets and buy goods in product markets.
d) individuals buy productive resources from factor markets and provide labor for product markets.
10)
in the product market,
a) productive resources are bought and sold.
b) producers sell goods and services to consumers.
c) a nation's total output of goods and services increases.
d) the amount of output produced by a given amount of inputs is measured.
11)
demand and supply 1
price quantity demanded quantity supplied
$10 10 60
$8 20 45
$6 30 30
$4 40 15
$2 50 0

if the price were $2, a
a) surplus of 50 units would exist and price would tend to rise.
b) surplus of 25 units would exist and price would tend to fall.
c) shortage of 25 units would exist and price would tend to fall.
d) shortage of 50 units would exist and price would tend to rise.
12)

if the price of the good represented by the graph increased from $5 to $10, which statement would be true?
a) the demand would increase by 5 units of the good.
b) the demand would decrease, while the supply would increase.
c) the quantity supplied of the good would decrease from 7 to 4.
d) the quantity demanded would decrease, and the quantity supplied would increase.
13)
what is meant by the statement "money is a medium of exchange"?
a) money is a measure of societal status.
b) money is a measure of a product's value.
c) money can be traded for goods and services.
d) money can be acculumated as a form of wealth.
14)
which of these statements is true of complementary products?
a) an increase in demand for one will cause a decreased demand for the other.
b) an increase in the price of one will cause a decrease in the price of the other.
c) an increased supply of one product will result in a decreased supply of the other.
d) an increase in the demand for one will usually result in an increased demand for the other.
15)
which market(s) has no competition
a) monopoly
b) oligopoly
c) perfect competition
d) monopolistic competition
16)

the purpose of the graph is to show
a) a good's equilibrium price
b) labor required for a project
c) changes in the demand for a product
d) production possibilities with available resources