Econ Unit 3 Review – Flashcards
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Every day on your way to basketball practice you wave to Mr. Martin, who owns the neighborhood flower stand. Mr. Martin's store is probably a
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sole proprietorship.
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Good Wireless and Better Wireless merge to form Best Wireless. The federal government watches this merger carefully for evidence of a
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monopoly.
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You are part-owner of NewBrands corporation because you
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own the company's stock.
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What are the money and other valuables that belong to a corporation or partnership called?
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assets
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Corporations are defined as "entities" because they
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have a legal identity separate from those of their owners.
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Jon is deciding between a job with Company A that pays $500 a week and a job with Company B that pays $550 a week. He decides to take the job with Company A, whose lower compensation is offset by its
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benefits such as health insurance and stock options.
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Which of the following is a disadvantage of a sole proprietorship?
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lack of permanence
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The family-owned Italian restaurant in your neighborhood is probably an example of a
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general partnership.
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Which of the following is a business organization owned by a group of people for their mutual benefit?
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a cooperative
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How are wages for a particular job determined?
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By the equilibrium between the supply and demand for workers for that job.
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You are looking for a job with many fringe benefits. You therefore probably want to work for a
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corporation.
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If a general partnership fails, who is responsible for the debts?
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all of the partners
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You live in a community with many teenagers, and you work during the summer bagging groceries for a low hourly wage. How might living in a community with fewer teenagers looking for grocery bagging jobs affect your hourly wage?
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Your wages would probably be higher because demand for baggers would be higher.
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Which of the following jobs are expected to grow significantly?
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computer-related jobs
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The government usually allows conglomerates because they
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do not result in decreased competition.
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Your cousin tells you that his trucking company has resorted to arbitration with the trucker's union. This means that
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a neutral third party is reviewing the dispute and will impose a legally binding decision.
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Mark is switching from his job as a data entry clerk in an office to a job in a steel mill. One reason his wages will increase significantly in his new job is that
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it is more dangerous to work in a steel mill than in an office.
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Approximately what percentage of U.S. workers belong to labor unions?
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13 percent
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All of the following help explain why carpenters usually earn more than dishwashers EXCEPT
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a greater supply of carpenters than dishwashers.
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What percentage of businesses are sole proprietorships?
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75%
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For which kinds of discrimination does the EEOC handle complaints?
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race, sex, color, religion, or nationality
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According to economic theory, what happens to job opportunities in low-paying jobs when the minimum wage goes up?
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The quantity of labor demanded goes down.
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A joining of two or more businesses that are involved in different stages of producing the same good or service is called which of the following?
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vertical merger
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You own a successful bicycle repair business. You are considering incorporating in order to
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raise money more easily.
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When did labor unions begin to gain some legal rights in the United States?
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1930s
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Which of the following could be considered company benefits?
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the employer's payments to Social Security
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What are organizations that are in the business of benefiting society and operate like a business called?
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nonprofit organizations
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What is collective bargaining?
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union and company representatives meeting to negotiate a new labor contract
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The equilibrium wage for doctors is high because the
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supply of doctors is relatively low and the demand is relatively high.
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What are royalties?
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a percentage of a franchise's earnings paid to the parent company
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Ellen started a catering business, but soon decided that catering was too stressful for her. She could close her business relatively easily and return to school because the business was a
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Sole proprietorship
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Your running shoes were designed in the United States but assembled in Asia by a company called RunnerPro. RunnerPro is a
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Multinational corporation.
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When your grandfather and his friends entered the work force in 1950, they were likely to have jobs in
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factories producing electronics.
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Your family's house needs a new roof. In order to find out which roofers are reliable and charge fair prices, your family should call your local
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better business bureau
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Which of the following is an advantage of a sole proprietorship?
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It is the least-regulated form of business organization.
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Your uncle owns a convenience store that has branches nationwide. His store is an example of a
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business franchise
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Which of the following is an example of using physical capital instead of human capital to get a job done?
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an automatic teller machine
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Suppose the cost of having your teeth filled rises in your area. The result will likely be
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an increase in the number of dental students in your area
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Current labor market trends include
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an increase in service jobs accompanied by a decrease in manufacturing jobs
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In your community there are enough lawncare workers to fill all the lawncare jobs available. There are also no unemployed lawncare workers. You can assume that the wage paid to lawncare workers is
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in equilibrium
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Labor unions arose largely in response to the
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dangerous working conditions and long hours of factory jobs in the 1800s.
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You decide to go to a consumer cooperative to buy supplies for your class party. Prices are cheaper there mainly because consumer cooperatives
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make large purchases
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What is the major difference between a corporation and other kinds of businesses?
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A corporation has a separate entity apart from that of the owners and workers.
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Which of the following represents the percentage of all U.S. businesses that are corporations, and the percentage of all goods that those corporations sell?
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20 percent of businesses; 90 percent of goods sold
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Tracy, a recent college graduate who earned straight "A's" as a history major, is applying for a job as a legal assistant. Although she does not have a background in law, she hopes to land the job because of the
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screening effect.
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Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?
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A partnership has more personal stability and access to more money.
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In inflation-adjusted dollars, how have average wages in the United States changed in the last 20 years?
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Wages have stayed the same.
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The strength of labor unions has declined in recent years because
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all of the above
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Emily has been waiting for a promotion to a management position for almost five years. When she notices that men fill most of the higher-level jobs in her company, she suspects that her company has
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a glass ceiling
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In a publicly held corporation
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a large number of stockholders can buy and sell stock.
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The label in your jeans says that they were made in a Latin American country. This is probably because the jeans manufacturing company wanted to locate its plant
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Where labor was plentiful therefore cheaper.
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What is a fringe benefit?
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a payment other than wages or salaries
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Wagner Act
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It was enacted to eliminate employers' interference with the autonomous organization of workers into unions.
