Eco 365 Week 4 Knowledge Check
Eco 365 Week 4 Knowledge Check
1. What do economists mean when they say there is "market failure"? Correct answer: Free Markets yield results that economists do not consider socially optimal
2. If a market has no externalities, marginal private costsBottom of Form Correct Answer: equal marginal social costs
3. Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement Correct Answer: an externality
4. The size performance improvements sought by those pursuing horizontal mergers is Correct Answer: to coordinate activities more efficiently to spur growth
5. A company buys another company in the same supply chain, but either in front of it or behind it in the supply chain. This is called Correct Answer: a vertical acquisition
6. Sony and Toshiba become partners in a microprocessor manufacturing company. This is called Correct Answer: a joint venture
7. If two companies share ownership in a venture and agree on a formal management structure including members of both companies, this is called a Correct Answer: joint venture
8. Two companies come together to take on a project that has an explicit time cycle and ending point. The most efficient form of acquisition of this project is Correct Answer: a joint venture
9. The more elastic the supply and the demand curves are, the Correct Answer: greater the shortage a price ceiling will create
10. Assuming a binding price floor, the more elastic the supply and demand curves are, the
1. What do economists mean when they say there is "market failure"? Correct answer: Free Markets yield results that economists do not consider socially optimal
2. If a market has no externalities, marginal private costsBottom of Form Correct Answer: equal marginal social costs
3. Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement Correct Answer: an externality
4. The size performance improvements sought by those pursuing horizontal mergers is Correct Answer: to coordinate activities more efficiently to spur growth
5. A company buys another company in the same supply chain, but either in front of it or behind it in the supply chain. This is called Correct Answer: a vertical acquisition
6. Sony and Toshiba become partners in a microprocessor manufacturing company. This is called Correct Answer: a joint venture
7. If two companies share ownership in a venture and agree on a formal management structure including members of both companies, this is called a Correct Answer: joint venture
8. Two companies come together to take on a project that has an explicit time cycle and ending point. The most efficient form of acquisition of this project is Correct Answer: a joint venture
9. The more elastic the supply and the demand curves are, the Correct Answer: greater the shortage a price ceiling will create
10. Assuming a binding price floor, the more elastic the supply and demand curves are, the