ECO 105 Week 3 Quiz | Assignment Help | Wilmington University
- Wilmington University / ECO 105
- 02 Sep 2020
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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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