Economics

1. What kinds of liabilities are sole proprietors subject to? 2. Why are many sole proprietors unable to offer advancement and fringe benefits? 3. Why does government allow natural monopolies? 4. How do general partnerships, limited partnerships and limited liability partnerships differ? 5. What are the disadvantages of partnerships? 6. How does a corporation differ from a sole proprietorship or partnership? 7. What information is required in a certificate of incorporation? 8. Why must stockholders pay taxes on dividends? 9. How do horizontal mergers, vertical mergers and conglomerates differ? 10. How might a corporation benefit by being multinational?

1. What is a market structure dominated by one large seller? 2. Why must perfectly competitive markets always deal in commodities? 3. Why does government allow natural monopolies? 4. What kinds of government monopolies exist? 5. What is an oligopoly? 6. What is a cartel? 7. Why are economists skeptical about most claims of predatory pricing? 8. Why did the government pass antitrust laws? 9. What are some examples of industries that have been deregulated since the 70s and 80s? 10. What have been the benefits of deregulation?

1. What example of a price ceiling does the text give? Explain. 2. Why do few people benefit from price ceilings? 3. How do rent control laws affect price equilibrium? 4. What two examples of price floors does the text give? Explain? 5. What will happen to suppliers in a market if there is a surplus of the good they sell, but no supplier can afford to lower prices? 6. List three reasons why a price-based system works more efficiently than central planning. 7. What do you think Adam Smith would think of rationing? Explain. 8. How do prices act as a “language” in the free market?. 9. What alternative is there to participating in a market controlled by government? 10. What’s another term for externalities? How does it affect price and supply?