Economics Chapter 7/8 - REVIEW GAME 1. This provides government protection to inventors. patent 2.

What is the legal bound obligation to pay debts? Liability 3. Which market structure has the LEAST competition? Monopoly 4. What are certificates of ownership in a business? Stocks 5. In this market structure the supplier has NO CONTROL over price: perfect competition 6. What is an enterprise that makes products usually in order to make a profit? business organization 7. What are three types of business organizations? Sole proprietorship, Partnership, Corporation 8. What is an obstacle that makes it difficult for new firms to enter a market? barrier to entry 9. Which market structure has the highest barriers to entry? monopoly 10. What is a business owned and controlled by one person? sole proprietorship 11. What is a business organization in which partners share equally in both responsibility & liability? General partnership 12. In which market structure do a few large firms produce 70% to 80% of the output? Oligopoly 13. In this market structure a company has total control over price: monopoly 14. What is a combination of two or more businesses to form a single firm? Merger 15. What is it called when two or more companies that produce the same kind of products join forces? Horizontal merger 16. In this market structure products are identical regardless of the supplier: perfect competition 17. What is a business owned by stockholders? corporation 18. Which type of monopoly runs most efficiently when one large firm supplies all of the output? natural monopoly 19. What is a way to attract customers through style, customer service level, or location, but not a lower price? Nonprice competition 20. What is it called when firms involved in different steps of manufacturing or marketing join forces? vertical merger 21. If a sole proprietorship fails, the owner of the business Can close the business with no payment to anyone Must pay all the business debts (ANS) Has to do elaborate legal work to close the business Must pay off the investors 22. What is a business composed of several companies, each one producing unrelated products? Conglomerate 23. Which type of monopoly exists because a firm controls a manufacturing method or an invention? technological monopoly 24. What are competitive products that are similar but have minor differences? differentiated products