Which example below represents an oligopoly?

• In this industry, groups of firms work together to establish stable pricing.
• In the country where this company is located, government regulations prevent competition from other companies.
• A company produces jeans that are pretty much the same as other jeans on the market, except for their advertising, which features a world-famous supermodel.

All of the following are reasons why companies are slow to adopt sustainable practices that are better for the environment EXCEPT__________.

• CEO compensation is tied to stock performance
• the universal adoption of the KyotoProtocol
• US investors are less concerned about the environment and climate change thanthose in Europe
• it is difficult to get an accurate cost on the impact of climate change

What is the study of the behavior of consumers and businesses holistically across an economy?

• Social science
• Microeconomics
• Civics
• Macroeconomics

If variable costs for a firm are $800, the average total costs are $6, and the firm sells 175 units, what are the firm's fixed costs?

• $1050
• $162.50
• $250
• $975

Which statement below is NOT trueregarding process mapping?

• Process mapping forms a foundation for efficiency evaluation.
• A process map is a visual representation of the stages in a process.
• Process mapping is used for evaluating sustainable business solutions.
• Almost all business practices and decisions have been documented in some way or another.

When a business owner uses process mapping, an activity is marked by __________.

• an oval
• a box or rectangle
• a circle
• a diamond

In anticipation of an upcoming football season, State University increased the price of all logo apparel at the bookstore. Tothe bookstore manager's surprise, he sold fewer units of logo apparel.

This situation is an example of which of the following?

• Shift in demand to the right
• Shift in demand to the left
• Increase in quantity demanded
• Decrease in quantity demanded

Which of the scenarios below is an example of a monopoly?

• A company engages in predatory price cutting in order to discourage any competition.
• In this industry, it is easy to enter and exit themarket.
• A company produces a lemon-lime soda that is identical to others on the market in terms of taste but has a recognizable brand because of advertising.
• This industry has stable pricing due to the tendency of groups of firms to work together to set prices.

Rent control is a type of price __________ that has the effect of __________ producer surplus as compared to the free market equilibrium.

• ceiling; reducing
• floor; increasing
• ceiling; increasing
• floor; reducing

Which of the following is a trait of a perfectly competitive market?

• Firms are price makers
• Barriers to entry exist
• Information flows freely
• Firms are not producing at minimum cost

In which type of market structure might we see firms attempting to collude with one another to set prices?

• Oligopoly
• Perfect competition
• Monopolistic competition
• Monopoly

When a firm uses four machines, it can produce 300 units daily.A fifth machine allows the firm to product 440 units.

Which of the following is true regarding production?

• The marginal product for the fifth machine is 140 units and the average product is 88 units.
• The total production for nine machineswould be 740 units with an average production of 123.33 units.
• The marginal product for the fourth machine is 300 and the average product is 75 units
• The marginal production for the fifthmachineis 440 units and total production would be 740 units.

Pollution by-product that impacts third parties is which type of failure?

• Market failure due to moral hazard
• Government failure due to moral hazard
• Government failure due to externalities
• Market failure due to externalities

Select the example below that could be categorized as own-price elasticity.

• Since Tanya got a new job, she was able to buy a new car and get rid of the old one.
• Tim's favorite brand of tools are marked down 50%, so he buys twice as many.
• When the price of gasoline goes up, people purchase fewer large vehicles.
• When the price of colombiano coffee goes up, people purchase guatemalteco coffee instead.

Which of the following is NOT an example of a constraint limiting a decision?

• Peter opts to purchase frozen pizza for an upcoming party; he doesn't have enough money to have pizza delivered.
• Bella decides not to purchase another pair of shoes; she thinks they are too similar to those she already owns.
• Frank decides to wait until he can afford to put 20% down on a new house, and continues to rent.
• Susan can't apply for the job she really wants because the hours conflict with her university classes.

When the small town where Grand Vacations was located experienced an increase in its unemployment rate, the travel agency, whose prices remained constant, saw a decline in the number of customers seeking its services.

Which of the economic principles below is being demonstrated in this example?

• Movement along the supply curve
• Shift in supply
• Shift in demand
• Movement along the demand curve

According to consumer choice theory, what will a rational consumer do?

• Compare two bundles of goods and select the one which provides the best utility
• Always select the bundle of goods below his/her budget constraint
• Always choose a bundle of goods that has the best quality
• Choose the bundle of goods that is least expensive, in order to maximize utility

When sales double, a pizza restaurant finds its costs for sauce, dough and electricity increase, because these are __________.

• variable costs
• sunk costs
• fixed costs
• implicit costs

Which one of the following is NOT an example of a practice that contributes to anthropomorphic climate change?

• Overuse and grazing of lands
• Deforestation and use of pesticides
• Emissions of greenhouse gases
• Change in migration patterns

Which of the following is an example of a constraint?

• Sarah decides not to purchase an additional pair of Ugg boots because she already has two pairs at home.
• Peter's Place can serve 300 people in its banquet room, and often has to turn away large parties.
• Harbor Sweets will produce to the pointwhere marginal revenue is equal to marginal cost.
• A SouthCoast Clothing decides that five machines and 15 workers is the most efficient in production.