Economics Unit 3 Study Guide

1. Give an example of how the government does each of the following regulatory function: Protect Consumers, Promote Competition, Supervise Labor/Management Relations, and Regulate Negative Externalities.

2. How is a limited partnership different from a general partnership?

3. What does the Securities and Exchange Commission do?

4. What are the advantages of the Corporation?

5. What are the disadvantages of the Corporation?

6. What are the advantages of the Sole Proprietorship?

7. What are the disadvantages of the Sole Proprietorship?

8. What are the advantages of the Partnership?

9. What are the disadvantages of the Partnership?

10. What is unlimited liability?

11. What is limited liability?

12. What business organizations have unlimited liability?

13. What are dividends?

14. What are the characteristics of Perfect Competition?

15. What are the characteristics of Monopolistic Competition?

16. What are the characteristics of Oligopoly?

17. What are the characteristics of Monopoly?

18. Explain each of the four types of monopolies.

19. What is the result of interdependence in an Oligopoly?

20. Why is the government involved in the U.S. economy?

21. What do antitrust laws do?

22. Define the following: Economies of Scale, Nonprice Competition, and Product Differentiation.

23. What is an example of nonprice competition?

24. What is laissez-faire?

25. What are negative externalities?

26. What are positive externalities?

27. What are patent laws? What type of monopoly are they associated with?

28. What is a cartel and give examples of it?

- It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production (common in Oligopolies) Example: Oil Producing Countries (OPEC)

-Price fixing is outlawed by the Sherman Anti-trust Acts

29. What is most common form of business? What is least common?