1. Which group has the ability to influence business behavior?
a. Consumers.
b. Community activists.
c. Workers.
d. All of the above.
2. Firms that have market power:
a. behave competitively.
b. have some control over the market price.
c. create a more equitable distribution of income.
d. All of the above.
3. The social contract that a business has with society:
a. Is legally binding.
b. Is required by the government.
c. Suggests that businesses have a moral obligation to benefit other stakeholder groups.
d. All of the above.
4. Monopoly violates which assumptions of the competitive market model?
a. That consumers have choice.
b. That firms have little or no pricing power.
c. That entry by new firms is relatively easy.
d. All of the above.