chapter 7 review made by students. which of the following is a public good? a. national defense b....
TRANSCRIPT
Chapter 7 Review
Made by students
Which of the following is a public good?
A. National defense
B. Police
C. Highways
D. All of the above
Which of the following is a public good?
A. National defense
B. Police
C. Highways
D. All of the above
Externalities are:
A. Unintended side effects
B. Inadequate competition
C. Inadequate information
D. All of the above
Externalities are:
A. Unintended side effects
B. Inadequate competition
C. Inadequate information
D. All of the above
Oligopolies consist of
A. One seller
B. Few large sellers
C. Many sellers
D. None of the above
Oligopolies consist of
A. One seller
B. Few large sellers
C. Many sellers
D. None of the above
Monopolistic competition is the same thing as perfect competition.
True or False?
Monopolistic competition is the same thing as perfect competition.
True or false?
FALSE—products are different and they use advertising
There are four types of monopolies.
True or False?
There are four types of monopolies.
True or False?
TRUE
When buyers and sellers deal in identical
products:
A. Monopolistic competition
B. Oligopoly
C. Perfect competition
D. Market structures
When buyers and sellers deal in identical
products:
A. Monopolistic competition
B. Oligopoly
C. Perfect competition
D. Market structures
Collusion is:
A. An agreement to charge the same price for a product
B. A formal agreement to set prices or act in a cooperative manner
C. When one company lowers their price, other will lower theirs
D. Art and literary works for a lifetime plus 50 years
Collusion is:
A. An agreement to charge the same price for a product
B. A formal agreement to set prices or act in a cooperative manner
C. When one company lowers their price, other will lower theirs
D. Art and literary works for a lifetime plus 50 years
One seller of a product is:
A. A monopoly
B. Monotous seller
C. A one man team
One seller of a product is:
A. A monopoly
B. Monotous seller
C. A one man team
The Sherman Anti-Trust Act forbade discounts of
goods to large buyers.
True or False?
The Sherman Anti-Trust Act forbade discounts of
goods to large buyers.
True or False?
False—it was the first law against monopolies
A price war may occur if one company lowers their
price and others follow.
True or False?
A price war may occur if one company lowers their
price and others follow.
True or False?
TRUE
Businesses must give information to the public
in writing.
True or False?
Businesses must give information to the public
in writing.
True or False?
True—this is public disclosure
Negative externalities affect the third party by harm or inconvenience.
True or False?
Negative externalities affect the third party by harm or inconvenience.
True or False?
TRUE
Public goods can be withheld.
True or False?
Public goods can be withheld.
True or False?
False—everyone receives public goods regardless of income or
ability to pay
A market structure is the nature and degree of competition among
firms operating in the same industry.
True or False?
A market structure is the nature and degree of competition among
firms operating in the same industry.
True or False?
TRUE
The government participates in the
economy to prevent competition.
True or False?
The government participates in the
economy to prevent competition.
True or False?
False—the government promotes competition
Five reasons markets fail include all of the following
except:
A. Resource mobility
B. Inadequate competition and information
C. Negative externalities
D. It includes all of these
Five reasons markets fail include all of the following
except:
A. Resource mobility (should be immobility)
B. Inadequate competition and information
C. Negative externalitiesD. It includes all of these
There are 5 market structures.
True or False?
There are 5 market structures.
True or False?False—4 market structures:
Perfect competitionMonopolisitic competition
OligopolyMonopoly
What did the Clayton Antitrust Act outlaw?
A. Monopolies
B. Discounts of goods to large buyers
C. Price discrimination
D. pollution
What did the Clayton Antitrust Act outlaw?
A. Monopolies
B. Discounts of goods to large buyers
C. Price discrimination
D. pollution
The cease and desist order stops unfair
business practices.
True or False?
The cease and desist order stops unfair
business practices.
True or False?
TRUE
An externality is :
A. The result of inadequate competition
B. Positive or negative
C. An unintended side effect
D. Something that cannot be withheld
An externality is :
A. The result of inadequate competition
B. Positive or negative
C. An unintended side effect
D. Something that cannot be withheld
A positive externality is a benefit received by a 3rd
party that had nothing to do with the activity.
True or False
A positive externality is a benefit received by a 3rd
party that had nothing to do with the activity.
True or False
TRUE
A water or gas company has what type of
monopoly?
A. Natural
B. Government
C. Technological
D. Geographic
A water or gas company has what type of
monopoly?
A. Natural
B. Government
C. Technological
D. Geographic
Adequate competition is one reason why markets
fail.
True or False?
Adequate competition is one reason why markets
fail.
True or False?
FALSE—inadequate competition
What is an exclusive right to produce, use or sell any new invention?
A. Patent
B. Copyright
C. Sherman Anti-trust Act
D. Clayton Anti-trust Act
What is an exclusive right to produce, use or sell any new invention?
A. Patent
B. Copyright
C. Sherman Anti-trust Act
D. Clayton Anti-trust Act
There is no “real perfect competition”—it is used to
evaluate other market structures.
True or False?
There is no “real perfect competition”—it is used to
evaluate other market structures.
True or False?
TRUE—the closest thing to perfect competition is truck
farming or a farmers market
The reason government participates is because:
A. They promote and encourage competition
B. Prevent monopolies
C. Fulfill the need for public goods
D. All of the above
The reason government participates is because:
A. They promote and encourage competition
B. Prevent monopolies
C. Fulfill the need for public goods
D. All of the above
Internalizing externalities will cause the supply curve
to shift to the right.
True or False?
Internalizing externalities will cause the supply curve
to shift to the right.
True or False?
FALSE—great question by the way. It will cause the supply curve to shift to
the left—in hopes of reducing the externalities.
Pepsi and Coke is an example of an oligopoly.
True or False?
Pepsi and Coke is an example of an oligopoly.
True or False?
TRUE
Inadequate information is when knowledge that is
important to buyers is hard to find.
True or False?
Inadequate information is when knowledge that is
important to buyers is hard to find.
True or False?
TRUE
Pollution is an example of a positive externality.
True or False?
Pollution is an example of a positive externality.
True or False?
FALSE—it is a negative externality
Requirement that businesses reveal
information to the public is:
A. Public disclosure
B. Internalizing externalities
C. Monopoly
D. commission
Requirement that businesses reveal
information to the public is:
A. Public disclosure
B. Internalizing externalities
C. Monopoly
D. commission
Which of the following is not a type of monopoly?
A. Natural
B. Government
C. Physical
D. Geographic
Which of the following is not a type of monopoly?
A. Natural
B. Government
C. Physical
D. Geographic
Which of the following is NOT a public good?
A. Highway
B. Police
C. Firefighters
D. Nasa
Which of the following is NOT a public good?
A. Highway
B. Police
C. Firefighters
D. Nasa
Wal-Mart is considered a monopoly.
True or False?
Wal-Mart is considered a monopoly.
True or False?
False—(although no one beats their low low prices)—comment
made by student, not by me.
The United States has many monopolies.
True or False?
The United States has many monopolies.
True or False?
FALSE—actually very few
The Sherman Anti-Trust Act was made during
the Civil War.
True or False?
The Sherman Anti-Trust Act was made during
the Civil War.
True or False?
FALSE--1914
Internalizing externalities is a tax system to lessen
negative externalities.
True or False?
Internalizing externalities is a tax system to lessen
negative externalities.
True or False?
TRUE—the gov’t taxes computers in order to lessen
negative side effects.
An oligopoly has a few large sellers that dominate the industry
and a single firm can change output, sales and price.
True or False?
An oligopoly has a few large sellers that dominate the industry
and a single firm can change output, sales and price.
True or False?
TRUE
Market failure may occur if buyers cannot find
important information.
True or False?
Market failure may occur if buyers cannot find
important information.
True or False?
TRUE
In perfect competition, buyers and sellers act
independently.
True or False?
In perfect competition, buyers and sellers act
independently.
True or False?
TRUE