Government Quiz

Front 1

Perfect competition

Back 1

Many sellers that sell a standardized product

Front 2

Examples of perfect competition

Back 2

Peanuts, tomatoes, 4 corner gas station

Front 3

Do Individual firms have control over the price in perfect competition?

Back 3

NO- too many firms so they take market price

Front 4

Monopolistic competition

Back 4

Many sellers selling a differentiated product

Front 5

Monopolistic competition differs themselves in 4 ways

Back 5

1. Quality
2. Service
3. Location
4. Branding

Front 6

Does monopolistic competition have any control over price?

Back 6

Not by altering supply but by differentiating the product with one of the four characteristics

Front 7

Examples of monopolistic competition

Back 7

Fast food
Nike, addidas

Front 8

Monopoly

Back 8

one seller with one product

Front 9

Legal monopolies

Back 9

Patent for a product then you have exclusive rights to sell that product

Front 10

What is the downside to legal monopolies

Back 10

Companies can closely copy it

Front 11

Capitalist monopolies

Back 11

They did things to become a monopoly- not legal

Front 12

Examples of gov. monopolies

Back 12

DMV, USPS

Front 13

Natural monopolies

Back 13

Cheapest way to provide product is with one company

Front 14

Example of natural monopoly

Back 14

Alabama power

Front 15

Example of Capitalist monopoly

Back 15

Standard Oil, Microsoft bundle

Front 16

Example of legal monopoly

Back 16

Kleenex, Band Aid

Front 17

Does monopoly have control over price?

Back 17

Almost complete control

Front 18

Oligopoly

Back 18

Few sellers selling a standardized product

Front 19

Sole Proprietorship statistics

Back 19

73 businesses; earn 5% of cash

Front 20

Partnership statisitcs

Back 20

7% of businesses; earn 6% of cash

Front 21

Corporation statisitics

Back 21

20% business; earn 89% of cash

Front 22

Who has double taxation?

Back 22

Corporation

Front 23

Who needs a charter issued by the state?

Back 23

Corporation

Front 24

Limited parter

Back 24

They have limited liability

Front 25

General partner

Back 25

Each partner carries unlimited liability

Front 26

2 main ways corporations raise money

Back 26

stocks and bonds

Front 27

Common stocks

Back 27

You get voting rights but no priority with dividends

Front 28

Preferred stocsk

Back 28

Dont get voting rights but you have priorities with dividends

Front 29

Discount bonds

Back 29

You pay 50 dollars for a year then get higher money back on maturity date

Front 30

Coupon bonds

Back 30

You pay 50 dollars for one year and get periodic payments and 50 dollars at the end of the year

Front 31

What happens if the company goes under with discount bonds?

Back 31

YOU LOOSE

Front 32

What happens if the company goes under with coupon bonds?

Back 32

You still get monthly payments

Front 33

Negotiable bonds

Back 33

Trade of bonds

Front 34

Main advantage of LLC

Back 34

You can only lose your investments

Front 35

Cooperatives

Back 35

Business that is not meant for a profit; made to benefit members

Front 36

Consumer cooperative

Back 36

members combine their money to buy alot of products from manufacture
ex. sams

Front 37

Servce cooperative

Back 37

Members recieve service at discounted price
Ex. Child care, AAA

Front 38

Producer cooperative

Back 38

Group of sellers selling the same product
Ex. farms

Front 39

Explicit costs

Back 39

accounting costs

Front 40

Implicit costs

Back 40

how much $ in other resources

Front 41

Accounting profit

Back 41

TR-EC

Front 42

Economic profit

Back 42

TR-EC&IC

Front 43

Normal profit

Back 43

Total Implicit

Front 44

Advantages of large scale firms

Back 44

1. Technology
2. Specialization
3. Buy in large amounts
4. Suppy-changing
5. Vertical integration