| A | B |
|---|
| What does the Law of Supply state? | More will be offered for sale at high prices |
| At a given price, when does a surplus occur? | When the quantity supplied is greater thatn quantity demanded |
| Butter and margarine are examples of what economic concept? | substitutes |
| What is equilibrium? | qunatity supplied = quantity demanded |
| If there is a shortage in a market, how is the price likely to be affected? | increase |
| If there is a surplus in a market, how is the price likely to be affected? | decrease |
| What is the function of the Securities and Exchange Commission? | regulate sale of steak |
| What is a merger? | combination of 2 or more businesses to make a single firm |
| What are some advantages of a partnership? | ease of management, ease of establishment |
| What are some advantages of a corporation? | owners have limited liability for debt, unlimited use |
| What is the least common form of business organization in the United States? | parnerships |
| After one purchases a brand new car and drives it off the car lot, its value decreases. This loss of value is an example of what concept? | depreciation |
| What is the most common form of business organization in the United States? | proprietorship |
| What is a strength of the corporate form of business organization? | ease of raising financial capital |
| What represents basic ownership of a corporation? | stock |
| What is a disadvantage of a sole proprietorship? | unlimited liability |
| What term is described as a market structure with only one seller of a particular product? | monopoly |
