Economics Practice Test - Units 3 & 4
Practice Test for Mr. Campbell's Economics class.
- 1.Monopolistic competition is characterized by:
- A.
A few firms and low barriers to entry
- B.
Large number of firms and many barriers
- C.
Large number of firms and low barriers
- D.
Few firms and many barriers
- 2.What does it mean when demand for a product is inelastic?
- A.
People will buy much less of the product as the price rises
- B.
People will not buy any of the product when price goes up
- C.
There are very few substitute products for the good.
- D.
A price increase does not have a significant impact on purchasing habits.
- 3.What happens to supply when the selling price of an items down?
- A.
The cost of the items goes down.
- B.
The profit of the item goes down.
- C.
Businesses will produce less goods.
- D.
There is no relationship between the two.
- 4.Rent control is a type of:
- A.
Rationing
- B.
Price ceiling
- C.
Price floor
- D.
Surplus
- 5.In a publicly held corporation:
- A.
Stockholders rarely trade their stock
- B.
A large number of stock holders can buy and sell stock
- C.
Stocks are not usually traded at stock exchange
- D.
Family members are excluded from holding stock
- 6.How much control do firms in a perfect competition market have over price?
- A.
None
- B.
Very little
- C.
Some
- D.
Total control
- 7.What is an example of a variable cost in a Major League Baseball team?
- A.
Players salaries
- B.
Ticket sellers salaries
- C.
Field maintenance
- D.
Stadium rent
- 8.Which of the following is a disadvantage of sole proprietorship?
- A.
High taxes
- B.
Difficult to start up
- C.
Legal fees
- D.
Lack of permanence
- 9.A barrier to entry could be a:
- A.
Technology
- B.
Start up cost
- C.
Licenses
- D.
All of the above
- E.
None of the above
Questions: 10 | Attempts: 25202 | Last updated: Mar 22, 2022
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Questions: 20 | Attempts: 18006 | Last updated: May 18, 2022
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Questions: 10 | Attempts: 17328 | Last updated: Mar 22, 2022
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