Download Unit 3 Practice MC Questions

Mr.
Weiss
Unit 3
3. The movement in the graph
shows that the quantity
demanded of butter decreased
because the
a.
b.
c.
d.
price of butter increased.
price of margarine decreased.
price of margarine increased.
price of butter decreased.
Mr.
Weiss
Unit 3
3. The movement in the graph
shows that the quantity
demanded of butter decreased
because the
a.
b.
c.
d.
price of butter increased.
price of margarine decreased.
price of margarine increased.
price of butter decreased.
Mr.
Weiss
Unit 3
6. According to this
demand curve, if the
price of t-shirts increases
from $14 to $16, the
quantity demanded will
a.
b.
c.
d.
fall from 600 to 400.
rise from 400 to 600.
fall from 400 to 200.
rise from 200 to 400.
Mr.
Weiss
Unit 3
6. According to this
demand curve, if the
price of t-shirts increases
from $14 to $16, the
quantity demanded will
a.
b.
c.
d.
fall from 600 to 400.
rise from 400 to 600.
fall from 400 to 200.
rise from 200 to 400.
Mr.
Weiss
Unit 3
9. Which of the following choices
could cause the movement shown
in these graphs?
a. inputs become more expensive
b. the number of firms decreases
c. technology improves
production
d. taxes increase
Mr.
Weiss
Unit 3
9. Which of the following choices
could cause the movement shown
in these graphs?
a. inputs become more expensive
b. the number of firms decreases
c. technology improves
production
d. taxes increase
Mr.
Weiss
Unit 3
12. If you were to graph this supply schedule,
Schedule for CDs
the supply curve would Supply
Price per CD Quantity supplied
a.
b.
c.
d.
$10
$12
$14
$16
$18
$20
be horizontal.
be vertical.
slope upward from left to right.
slope downward from left to right.
(in millions)
100
300
500
700
900
1,100
Mr.
Weiss
Unit 3
12. If you were to graph this supply schedule,
Schedule for CDs
the supply curve would Supply
Price per CD Quantity supplied
a.
b.
c.
d.
$10
$12
$14
$16
$18
$20
be horizontal.
be vertical.
slope upward from left to right.
slope downward from left to right.
(in millions)
100
300
500
700
900
1,100
Mr.
Weiss
Unit 3
15. The quantity demanded of a product is
affected by
a.
b.
c.
d.
output versus input.
surplus quantities.
price.
shortages.
Mr.
Weiss
Unit 3
15. The quantity demanded of a product is
affected by
a.
b.
c.
d.
output versus input.
surplus quantities.
price.
shortages.
Mr.
Weiss
Unit 3
18. Which of the following
choices could cause the
movement shown in the graph?
a.
b.
c.
d.
a decrease in income
an increase in population
a increase in the price of a substitute
an increase in the price of a complement
Mr.
Weiss
Unit 3
18. Which of the following
choices could cause the
movement shown in the graph?
a.
b.
c.
d.
a decrease in income
an increase in population
a increase in the price of a substitute
an increase in the price of a complement
Mr.
Weiss
Unit 3
21.The principle that states that the more you
have of something, the less satisfaction you
will get from an additional unit is the
a.
b.
c.
d.
law of demand.
law of diminishing marginal utility.
law of equilibrium.
price elasticity.
Mr.
Weiss
Unit 3
21.The principle that states that the more you
have of something, the less satisfaction you
will get from an additional unit is the
a.
b.
c.
d.
law of demand.
law of diminishing marginal utility.
law of equilibrium.
price elasticity.
Mr.
Weiss
Unit 3
24. If the price of a product is above its
equilibrium price, the result is a
a.
b.
demand.
surplus.
c.
d.
shortage.
black market.
Mr.
Weiss
Unit 3
24. If the price of a product is above its
equilibrium price, the result is a
a.
b.
demand.
surplus.
c.
d.
shortage.
black market.
Mr.
Weiss
Unit 3
27.Where can a person look for help in starting a
new business?
a. the government and the Internet
b. the board of directors of a large corporation
c. banks and the Better Business Bureau
d. owners of similar businesses in the same area
Mr.
Weiss
Unit 3
27.Where can a person look for help in starting a
new business?
a. the government and the Internet
b. the board of directors of a large corporation
c. banks and the Better Business Bureau
d. owners of similar businesses in the same area
Mr.
Weiss
Unit 3
30. In a limited partnership,
a. all partners are equal.
b. a bank limits the partnership's liability.
c. some partners bear no risk.
d. a general partner manages the business.
Mr.
Weiss
Unit 3
30. In a limited partnership,
a. all partners are equal.
b. a bank limits the partnership's liability.
c. some partners bear no risk.
d. a general partner manages the business.
Mr.
Weiss
Unit 3
33. A disadvantage of sole proprietorships
and partnerships is that they have
a.
b.
c.
d.
no assets.
unlimited liability.
common stock.
little borrowing power.
Mr.
Weiss
Unit 3
33. A disadvantage of sole proprietorships
and partnerships is that they have
a.
b.
c.
d.
no assets.
unlimited liability.
common stock.
little borrowing power.
Mr.
Weiss
Unit 3
36. A partnership set up for a specific
purpose for a short period of time is
known as a
a.
b.
c.
d.
joint stock company.
acting board of directors.
joint venture.
committee.
Mr.
Weiss
Unit 3
36. A partnership set up for a specific
purpose for a short period of time is
known as a
a.
b.
c.
d.
joint stock company.
acting board of directors.
joint venture.
committee.
Mr.
Weiss
Unit 3
39.Interlocking directorates occur when the
boards of directors of competing companies
a. buy out similar firms in their industry.
b. sell their companies to one another.
c. are composed of many of the same members.
d. obtain a monopoly in a particular industry.
Mr.
Weiss
Unit 3
39.Interlocking directorates occur when the
boards of directors of competing companies
a. buy out similar firms in their industry.
b. sell their companies to one another.
c. are composed of many of the same members.
d. obtain a monopoly in a particular industry.
Mr.
Weiss
Unit 3
42.What is the main purpose of advertising in
monopolistic competition?
a. lowering prices among competitors
b. informing consumers that there are no other
choices
c. building brand loyalty
d. showing how similar a product is to its
competitors
Mr.
Weiss
Unit 3
42.What is the main purpose of advertising in
monopolistic competition?
a. lowering prices among competitors
b. informing consumers that there are no other
choices
c. building brand loyalty
d. showing how similar a product is to its
competitors
Mr.
Weiss
Unit 3
45. One advantage of an oligopoly is
a.
b.
c.
d.
more stable prices.
lower prices per product.
fewer product offerings.
better services.
Mr.
Weiss
Unit 3
45. One advantage of an oligopoly is
a.
b.
c.
d.
more stable prices.
lower prices per product.
fewer product offerings.
better services.
Mr.
Weiss
Unit 3
48.When two or more companies in the same
business combine into one corporation, the
transaction is known as a
a. joint venture.
b. vertical merger.
c. conglomerate merger.
d. horizontal merger.
Mr.
Weiss
Unit 3
48.When two or more companies in the same
business combine into one corporation, the
transaction is known as a
a. joint venture.
b. vertical merger.
c. conglomerate merger.
d. horizontal merger.
Mr.
Weiss
Unit 3