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8. The graph that shows the amount of a product producers are willing to supply at different
prices
is called:
a. the supply curve
b. the demand curve
c. not accurate for low priced goods
d. not accurate for high priced goods
9. The price of good X rises, the demand for good Y falls. Therefore, goods X and Y are
a. substitutes
b. normal goods
c. complements
d. inferior goods
11. A minimum wage that is set above the equilibrium in a particular business will cause a
a. shortage of workers
b. illegal trades
c. fewer exchanges
d. surplus of workers
e. will shift the supply curve to the right
12. When prices become too high for consumers, they look for
a. substitutes
b. inflation
c. inelastic demand
d. luxuries
15. The best example in the U.S. that comes close to perfect competition is
a. agriculture
b. computers
c. transportation
d. fast food
17. A situation where a single seller controls the quantity and price of a product
a. monopoly
b. monopolistic competition
c. oligopoly
d. perfect competition
18. This is a situation with many sellers, selling a similar but unique product
a. monopoly
b. monopolistic competition
c. oligopoly
d. perfect competition
21. Laws that prevent monopolies and break up those that exist are called
a. conglomerates
b. antitrust legislation
c. regulation
d. deregulation
22. When a corporation buys another corporation that sells the same products it is called
a. vertical merger
b. horizontal merger
c. illegal merger
d. interlocking directorate
23. When a corporation buys another corporation that sells products used in its production of
goods and/or services
a. vertical merger
b. horizontal merger
c. illegal merger
d. interlocking directorate
24. The government seeks to regulate monopolies in order to
a. control supply
b. increase competition
c. restrict pricing
d. oversee management
25. Many neighborhood businesses such as retail stores and grocery stores are involved in
a. imperfect competition
b. perfect competition
c. monopolistic competition
d. none of the above
27. The main incentive for accepting the risk of going into business is based on the
opportunity to
a manage others
b. make a profit
c. have more leisure time
d. pay fewer taxes