Exam 3: Economic Institutions

Suppose a single firm gains control of an industry by preventing other firms from entering the industry. As a result, the price charged by the single firm is much higher than the price that would be charged by many different firms producing this product in a competitive market. This situation can best be described as:

New developments in computer monitors have made flat panel LCDs cheaper and better than the older CRT models. Given that monitors can contain as much as 8 pounds of lead, disposing of the old monitors creates a:

Relative to corporations, sole proprietorships are:

When Churchill County residents voted whether to continue allowing two brothels to operate, the government was acting as:

Which of the following would most likely generate a negative externality?

If federal, state, and local governments were unable to raise any revenue, then government's role as:

Profit is:

Businesses fail because:

Socialism in theory is an economic system in which:

In the goods market:

Market and socialist economies can be contrasted in all the following ways except that:

Waste produced by a power plant that harms local fishing industries is an example of a:

Government regulation of working conditions is an example of government as:

Business decisions about what and how much to produce are based on what:

Japan, Germany, France, Britain, and the United States meet to try to coordinate their economic policies. This informal association is called:

The Industrial Revolution was important to the history of economic systems because it:

Global corporations:

The goal of socialist economies is to distribute what is produced according to the needs of individuals. Market economies tend to distribute what is produced according to ability and effort.

Which of the following is not an example of government's role as a referee?

In the United States, government performs all of the following functions except: