Which of the following is not an example of a business operated by a consumer cooperative?
a. grocery store
b. apartment building
c. Sunkist, a farm cooperative owned and operated by citrus growers
d. health plan
e. electric power facility
QUESTION 2One thing that is not true about cooperatives is that they
a. put out raw materials, like wool and cotton, to rural households that turn it into finished products
b. pool resources to buy and sell more efficiently
c. try to minimize costs
d. operate with limited liability of members
e. enjoy tax-exempt status
QUESTION 3A cooperative, or co-op for short, is a single-owner firm.
a. True
b. False
QUESTION 4Which of the following would not describe two thirds of the for-profit businesses in the United States as measured by sheer number of firms?
a. small retail businesses
b. small service operations
c. part-time home-based businesses
d. small farms
e. multinational corporation
QUESTION 5Firms
a. are where entrepreneurs combine resources
b. are economic units formed by profit-seeking entrepreneurs
c. are assumed to try to maximize profit
d. reward entrepreneurs with profits, which are sales revenue minus the cost of production
e. All of the answers are correct.
QUESTION 6Trade restrictions can take any of the following forms except one. Which is the exception?
a. tariffs
b. free trade agreements
c. quotas
d. voluntary trade restrictions
e. health and safety restrictions
QUESTION 7Trade restrictions result in all of the following except one. Which is the exception?
a. higher prices
b. fewer choices
c. improved quality
d. misallocation of resources
e. reduced competition
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