Econ Chapter 7-9

Front 1

When the price of a good is too high for consumers, they look for this.

Back 1

substitute

Front 2

What does diminishing marginal utility refer to?

Back 2

the more you buy something the less satisfying it is over time

Front 3

If the price of an item rises, quantity demanded usually does this

Back 3

decreases

Front 4

according to the law of supply, higher prices get producers to do this:

Back 4

produce more

Front 5

the interaction of supply and demand determines this

Back 5

equilibrium price

Front 6

if the price of a product is above its equilibrium price, the result is:

Back 6

surplus

Front 7

when someone runs a business, the should pay themselves a wage that is

Back 7

wanna make as much as u could make doing another job that u like

Front 8

unlimited liability means this:

Back 8

owner of a business is completely responsible for all losses and debt in a business

Front 9

do all partners share a risk in a limited partnership?

Back 9

no, some partners don't have any any risk at all

Front 10

this is the most common type of business organization

Back 10

sole proprietorship

Front 11

this is the biggest disadvantage of a sole proprietorship

Back 11

unlimited liability

Front 12

partners do what with gains or losses in a partnership

Back 12

share the gains and/or losses

Front 13

what do limited partners contribute to a business?

Back 13

funds or property

Front 14

this is one of the advantages of purchasing a franchise

Back 14

advertising

Front 15

this type of u.s. business accounts for the greatest share of revenues

Back 15

corerations

Front 16

who owns a corporation?

Back 16

share holders

Front 17

this is a disadvantage of a corporation

Back 17

pay more taxes

Front 18

who grants a corporate charter?

Back 18

state where you're going to put corporation

Front 19

what are holders of preferred stock guaranteed?

Back 19

dividen= return in money

Front 20

what type of stock gives investors voting rights?

Back 20

common stock

Front 21

in a perfectly competitive market, prices are demanded by this

Back 21

supply and demand

Front 22

the industry in the u.s. that most closely approaches perfect competition is this:

Back 22

agriculture

Front 23

how does perfect competition affect society?

Back 23

prices are forced down

Front 24

natural monopolies are businesses that do this:

Back 24

utilities, cable tv, public transportation

Front 25

this would be an advantage of an oligopoly

Back 25

keep prices more stable

Front 26

this is a big difference between monopolistic competition and an oligopoly

Back 26

number of sellers

Front 27

government regulations can actually decease competition in the economy by doing this:

Back 27

decrease competition

Front 28

when 2 or more companies in the same business combine into one corporation, the transaction is known as this:

Back 28

horizontal merger

Front 29

a parer company merging with an office supply company is an example of this:

Back 29

vertical merger

Front 30

short answer: How does owning a sole proprietorship compare with owning part of a partnership? what are the advantages and disadvantages of each type of ownership form

Back 30

s.p. you get all the moneyp. get half the money