C06 Online Exam 5_08 SCORE 100 PERCENT

Question 1

The common definition of price fixing is __________.

A. when companies agree to set prices artificially high 

B. when companies agree to limit production 

C. when a company sells a buyer certain goods only on condition that the buyer also purchases other goods from the firm 

D. when companies agree to limit production

Question 2

Which government law is the most important legislation that protects markets from price fixing?

A. Interstate Commerce Act 

B. Clayton Act 

C. Sherman Antitrust Act 

D. Tobacco Trust Act

Question 3

In a perfectly free competitive market, __________.

A. no buyer or seller has the power to significantly affect the price of a good 

B. the most influential buyers or sellers have the power to affect the price of a good 

C. the majority of buyers or sellers have the power to affect the price of a good 

D. only buyers have the power to significantly affect the price of a good

Question 4

What is the most obvious failure of monopoly markets?

A. the damage to the environment 

B. the high prices they allow the monopoly companies to charge 

C. the inequalities between employees and executives 

D. monopoly markets have no real failures

Question 5

An oil company is expanding, but no new oil fields are available. They therefore must resort to the expensive and less-efficient practice of extracting petroleum from oil sands. This is known as __________.  

A. the principle of increasing marginal cost 

B. the principle of gross marginal utility 

C. the principle of diminishing marginal utility 

D. the principle of increasing marginal utility

Question 6

Which of the following is the term for a situation in which manufacturers sell to firms only if the firms charge a certain price for the goods?  

A. retail price maintenance agreements 

B. bid rigging 

C. exclusive dealing arrangements 

D. price discrimination

Question 7

Monopolistic markets and their high prices and profits violate capitalist justice. Why?

A. Monopolies are much like communism. 

B. Buyers will not pay high prices, so the monopoly will fail. 

C. Charging high prices is an unsustainable business model. 

D. The seller charges more than the goods are worth; therefore, the prices are unjust.

Question 8

In a perfectly free economy, all buyers and sellers are what?

A. utility users 

B. utility creators 

C. utility maximizers 

D. utilitydiminishers

Question 9

What is necessary for free competitive markets?

A. an enforceable private property system 

B. government regulations 

C. fair prices 

D. a physical place to do business

Question 10

Which of the following is the term for a situation in which firms agree to sell only to customers in specific territories or to specific demographics?

A. market allocation 

B. bid rigging 

C. exclusive dealing arrangements 

D. tying arrangements

Question 11

Which of the following is the term for a situation in which firms limit their output?

A. market allocation 

B. bid rigging 

C. exclusive dealing arrangements 

D. manipulation of supply

Question 12

In a perfectly competitive market, what is the equilibrium point?

A. the point at which the sellers can produce the largest quantity, and the highest price at which the sellers can make a profit 

B. the point at which the sellers can produce the lowest quantity for the highest price at which buyers are willing to pay 

C. the point at which the quantity buyers want to buy equals that which sellers want to sell 

D. the point at which the quantity buyers want to buy equals that which sellers want to sell, and the highest price at which buyers are willing to pay equals the lowest price sellers are willing to sell at

Question 13

Which of the following are characteristics of a perfectly free economy?

A. There are numerous buyers and sellers, none of whom has a substantial share of the market. 

B. All buyers and sellers can freely and immediately enter or leave the market. 

C. Every buyer and seller has full and perfect knowledge of what every other buyer and seller is doing, including knowledge of the prices, quantities, and quality of all goods being bought and sold. 

D. All the above

Question 14

Which of the following is NOT a feature of a perfectly competitive free market?

A. All buyers and sellers are utility maximizers. 

B. Buyers and sellers do not have knowledge of what every other buyer and seller is doing. 

C. Goods being sold in the market are extremely similar. 

D. No external parties regulate the price.

Question 15

Efficiency comes about in perfectly competitive free markets when __________.

A. firms are motivated to invest resources in industries with a high consumer demand and move away from industries where demand is low 

B. firms are encouraged to minimize the resources they consume to produce a commodity and to use the most efficient technologies 

C. commodities are distributed among buyers such that buyers receive the most satisfying commodities they can purchase, given what is available to them and the amount they have to spend 

D. all the above

Question 16

What is a horizontal merger?

A. when a company unifies operations with its suppliers and distributors 

B. when a company joins with another company in another market to cross-sell their goods 

C. when two companies in the same market join together instead of competing 

D. when a company splits into two to better specialize in their markets

Question 17

When do prices in perfectly competitive markets drive resources away?

A. when demand is high 

B. when demand is low 

C. when there is a surplus of resources 

D. when there is a shortage of resources

Question 18

What is the “network effect” barrier to entry into a market?

A. when the value of a product goes down as the number of users increases 

B. when a product becomes more difficult to supply as the number of users increases 

C. when the value of a product goes up as the number of users increases 

D. when the value of a product goes up as the number of users decreases

Question 19

When a company sells a buyer certain goods only on condition that the buyer also purchases other goods from the firm, this is known as __________.

A. manipulation of supply 

B. exclusive dealing arrangements 

C. price discrimination 

D. tying arrangement

Question 20

Which of the following is the term for a situation in which a firm only sells a certain good if the buyer purchases another good?

A. tying arrangements 

B. incentivization

C. exclusive dealing arrangements 

D. predatory price discrimination

Question 21

“If you cut down a tree, plant a tree” is an example of what?

A. precautionary principle 

B. conservation based on justice to future generations 

C. ecocentrism

D. anthropocentrism

Question 22

Current estimates suggest that to halt increase in levels of greenhouse gases in the atmosphere, we would have to reduce emissions by what percentage?

A. 80-90% 

B. 10-20% 

C. 60-70% 

D. 5-10%

Question 23

What is Blackstone’s theory of environmental rights?

A. All organisms have a right to life, and we have a duty to protect their environment. 

B. Humans have a duty to ensure a livable environment because we each have a right to a livable environment. 

C. Environmental protection is necessary for the continuation of the species, and all other concerns are secondary. 

D. The only way to protect the environment is through political change.

Question 24

The undesirable and unintended contamination of the environment because of the manufacture or use of commodities is commonly referred to as __________.

A. resource depletion 

B. pollution

C. degradation

D. contamination

Question 25

Acid rain is caused by __________.  

A. global warming 

B. fossil fuels 

C. airborne toxins 

D. none of the above

Question 26

How much do the needs of future generations affect current prices?

A. They hardly affect current prices. 

B. They have some influence on current prices. 

C. Current prices are based upon the demand expected of future generations. 

D. They influence new market prices only.

Question 27

What is the term for the view that protecting the environment is important because it harms human beings?

A. ecocentrism

B. anthropocentrism

C. exocentrism

D. biocentrism

Question 28

When is the hole in the stratospheric ozone layer over the Antarctic expected to recover?

A. between 2060 and 2075 

B. between 2016 and 2020 

C. between 2100 and 2200 

D. never

Question 29

What is one reason why businesses were able to ignore their effects on the environment for so long?

A. Businesses tend to view the effects of their activities as negligible and ignore them. 

B. Governments had no way to stop them. 

C. Businesses did not know they were polluting. 

D. Businesses used bribes for many years as incentives to government to ignore the effects

Question 30

The saving or rationing of natural resources for later use is referred to as __________.

A. evolution

B. ecology

C. planned deletion 

D. conservation

Question 31

Which of the following can occur as a result of global warming?

A. famine

B. floods

C. drought

D. all of the above

Question 32

What is a good way for a business to determine the level of pollution control/removal?

A. Survey public opinion to find out what people think is a good amount. 

B. Consult with environmental scientists to determine the effects of the pollution. 

C. Do a cost-benefit analysis to determine the cost of removal versus benefits of removal. 

D. Remove all pollution, because zero pollution is achievable with enough cost.

Question 33

Each human generates __________ of garbage each day.

A. 45 pounds 

B. 14.5 pounds 

C. 4.5 pounds 

D. none of the above

Question 34

Which of the following is not a greenhouse gas?  

A. carbon dioxide 

B. methane

C. nitrogen

D. nitrous oxide

Question 35

Why should we protect the environment, according to ecological ethics?

A. for our future generations to enjoy 

B. to prevent the depletion of our resources 

C. for the sake of the environment itself 

D. for the preservation of our species

Question 36

How does carbon dioxide contribute to global warming?

A. It is less dense, leaving less space in the atmosphere for oxygen. 

B. It absorbs heat from the sun, preventing it from escaping into space. 

C. It is created during combustion, which is an exothermic process that collectively heats up the earth. 

D. Carbon dioxide does not contribute to global warming.

Question 37

Because our environment is so complex and its parts are so interwoven, many theorists believe that our duty to protect the environment extends beyond the welfare of humans to other nonhuman parts of the system. This idea is called __________.

A. ecological ethics or deep ecology 

B. conservation ethics 

C. survival ethics 

D. none of the above

Question 38

Ozone depletion is a serious threat to our survival; which gases are extremely harmful to the ozone layer?

A. carbon dioxide 

B. nitrogen

C. chlorofluorocarbons

D. hydrocarbons

Question 39

How much natural gas is the Green Valley estimated to have?

A. enough to support the entire world for a year 

B. enough to support the entire world for 10 years 

C. enough to support the entire nation for a year 

D. enough to support the entire nation for a month

Question 40

What are the two main threats to the environment?

A. first-world countries and capitalism 

B. first-world countries and overpopulation 

C. overpopulation and pollution 

D. pollution and resource depletion