Better Business, 5/e

Self Test: Multiple Choice

You can find the answers on the last page of this text.

1. 2-1 Which of the following is a good example of microeconomics?

   1. How a specific company would maximize its production and capacity so it could better compete in its industry

   2. How an increase in the unemployment rate would affect a country’s GDP

   3. How a decrease in taxation affects consumer spending

   4. All of the above

2. 2-2 There are four coffee shops in your town. All of them claim to have the “freshest-tasting coffee.” Each shop advertises the unique benefits of its coffee and prices. This is an example of

   1. pure monopoly.

   2. monopolistic competition.

   3. a regulated monopoly.

   4. an oligopoly.

3. 2-3 Jeannette has a successful organic spa business in which she gives ...