3. a characteristic of a natural monopoly is that
a. the firm is dedicated to the use of natural resources.
b. adding businesses in competition would increase cost to the consumer.
c. the firm is supported by the consumer and voted into existence by the voters.
d. there's no government intervention in the market.
student d
incorrect
reference: section 3.5

5. what's the term for the profit made from selling a stock at a higher price than the price paid for the stock?
a. stock profit
b. capital gain
c. depreciation
d. dividend
student a
incorrect
reference: section 3.2

7. a merger between a company and one of its suppliers is known as a merger.
a. horizontal
b. demand
c. vertical
d. supply
student d
incorrect
reference: section 3.4

12. in what way might a partnership be better than a sole proprietorship?
a. profits are split.
b. liability is limited.
c. setup costs are higher.
d. more capital is available.
student b
incorrect
reference: section 3.1

15. one advantage of preferred stock over common stock is that preferred stockholders
a. participate in managing the company.
b. are entitled to a fixed dividend.
c. have the right to vote for the board of directors.
d. get a cheaper price on stock.
student c
incorrect
reference: section 3.2

16. which of the following is a risk of large-scale government borrowing?
a. a gdp loss
b. higher prices and interest rates
c. lower interest rates
d. lower employment
student c
incorrect
reference: section 3.6

18. which of the following is a reason the government can't completely control the business cycle?
a. government has no control over consumer spending.
b. the government can't control interest rates.
c. unemployment is unpredictable.
d. it's difficult to accurately predict the economic future.
student a
incorrect
reference: section 3.8

19. which of the following is an external factor that create the business cycle?
a. psychological factors
b. consumer spending
c. bad weather
d. government spending
student b
incorrect
reference: section 3.7