1. A profit-maximizing monopolist will always charge _______ a perfect competitor would.
A. Less than
B. More than
C. The same as
D. Slightly more than cost than
2. A business with market power will typically:
A. Be more innovative than firms in perfect competition.
B. Force employees to work harder and longer.
C. Create new markets due to competitive forces.
D. Have lower productivity.
3. Which of the following is NOT an example of a barrier to entry?
A. Lower costs
B. Scarce land
C. Extreme start-up costs
D. Heavy government regulations
4. Which is an example of the government command approach?
A. The growth of community banks
B. Fast food franchises' growth
C. Public schools
D. Private college education
5. Between 1961 and 1972, the federal government spent as much on ______ as it did on building highways.
A. Welfare
B. Medicare
C. Crop subsidies
D. Space exploration
6. The inefficiency of taxation means that:
A. Governments tax only specific industries.
B. Taxes are applied more to consumers than businesses.
C. Imposing a tax on goods typically reduces the amount produced.
D. Imposing a tax on goods reduces prices and decreases supply.
7. A market where there are only one seller and buyers and have no good alternative is called a (n):
A. Oligopoly.
B. Oligarchy.
C. Monopoly.
D. Perfect completion market.
8. Among industrialized countries, the United States has one of the __________ public sectors, as a percentage of government spending and the economy.
A. Smallest
B. Largest
C. Fastest-growing
D. Slowest-growing
9. ______ is paid communication with potential customers in a public medium, such as newspapers and television.
A. Journalism
B. Advertising
C. Public Relations
D. Brand identification
1. A profit-maximizing monopolist will always charge _______ a perfect competitor would.
A. Less than
B. More than
C. The same as
D. Slightly more than cost than
2. A business with market power will typically:
A. Be more innovative than firms in perfect competition.
B. Force employees to work harder and longer.
C. Create new markets due to competitive forces.
D. Have lower productivity.
3. Which of the following is NOT an example of a barrier to entry?
A. Lower costs
B. Scarce land
C. Extreme start-up costs
D. Heavy government regulations
4. Which is an example of the government command approach?
A. The growth of community banks
B. Fast food franchises' growth
C. Public schools
D. Private college education
5. Between 1961 and 1972, the federal government spent as much on ______ as it did on building highways.
A. Welfare
B. Medicare
C. Crop subsidies
D. Space exploration
6. The inefficiency of taxation means that:
A. Governments tax only specific industries.
B. Taxes are applied more to consumers than businesses.
C. Imposing a tax on goods typically reduces the amount produced.
D. Imposing a tax on goods reduces prices and decreases supply.
7. A market where there are only one seller and buyers and have no good alternative is called a (n):
A. Oligopoly.
B. Oligarchy.
C. Monopoly.
D. Perfect completion market.
8. Among industrialized countries, the United States has one of the __________ public sectors, as a percentage of government spending and the economy.
A. Smallest
B. Largest
C. Fastest-growing
D. Slowest-growing
9. ______ is paid communication with potential customers in a public medium, such as newspapers and television.
A. Journalism
B. Advertising
C. Public Relations
D. Brand identification
