question

Price is the most commonly used method to ______ available goods and resources.

answer

rationalize

question

When you make any choice, the most valued alternative you give up (second choice) is considered your ______.

answer

opportunity cost

question

The branch of economics that deals with human behavior and choices as they relate to the entire economy is called ______.

answer

macroeconomics

question

Economist believe that a person will want to do a particular activity only if the ______ outweigh the ______.

answer

costs benefits

question

______ cannot be touched, but they represent valuable actions that others perform for us.

answer

services

question

The free enterprise system can also be accurately called ______.

answer

market economic system

question

A(n) ______ is defined by how a society answers the three economic questions.

answer

economic system

question

Inovations such as the internal combustion engine, steamship, telephone, telegraph, and computers are called advances in ______, which have led to lower communication costs.

answer

technology

question

One of the major benefits of globalization has been an increase in ______.

answer

standard of living

question

______ refers to any work done for a company by people other than the company by people other than the company's employees.

answer

offshoring

question

Firms that experience profits and losses as well as firms standing on the sidelines all receive ______, which will help them make future decisions regarding production.

answer

signals

question

An economic unit of 1 person or more that sells resources and buys good and services is a ______.

answer

household

question

A(n) ______ is an agreement between 2 or more people to do something.

answer

contract

question

The economic relationships that exist between different economic groups in an economy is the ______.

answer

circular flow of economic activity

question

______ is the amour of money left over after all costs of the production have been paid.

answer

profit

question

Two goods are ____ if they are consumed together.

answer

complements

question

A good that can be used in place of another good is called a ______.

answer

substitute

question

______ exists when he percentage change in quantity demanded is greater than the percentage change in price.

answer

elastic demand

question

A ______ is considered when the quantity demanded changes by a smaller percentage than price.

answer

inelastic demand

question

Demand is ______ when the percentage change in quantity demanded is the same as the percentage change in price.

answer

unit-elastic

question

A(n) ______ between two factors exists when the factors move in the same direction (for example, when one rises, the other rises).

answer

direct relationship

question

A graph that shows the amount of a good sellers are willing and able to sell at various prices is called a(n) ______.

answer

supply curve

question

______ refers to the willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period.

answer

supply

question

As ______ advances, the body of skills and knowledge concerning the use of resources in production increases thus improving society's ability to produce more with a fixed amount of resources.

answer

technology

question

A legal limit on the number of units of a foreign-produced good that can enter a country is called a(n) ______.

answer

quota

question

The price in a market that indicates that the quantity buyers are willing and able to buy is equal to the quantity that sellers are willing and able to produce and offer for sale is called the ______ price.

answer

equilibrium

question

When the quantity demanded of a good is greater than the quantity that is supplied, a ______ exists

answer

shortage

question

______ is what we call the stock of goods that a business or store has on hand.

answer

inventory

question

A legislated minimum price that is above the equilibrium price is called a ______.

answer

price floor

question

When the quantity supplied of a good exceeds the quantity demanded, there is a ______ in the markets.

answer

surplus

question

A ______ is the person or group that buys a franchise.

answer

franchisee

question

______ is the additional cost of producing one or more unit of a good.

answer

marginal cost

question

Total cost divided by the quantity of output is ______ cost.

answer

average total

question

______ cost is on expense that changes as output changes.

answer

variable

question

The law of ______ states that if additional units of one resource are added to another resource in fixed supply eventually the additional output will decrease.

answer

diminishing marginal returns

question

A(n) ______ market has many buyers and sellers that all sell identical goods.

answer

perfectly competitive

question

A seller that can sell its goods only at equilibrium price would be considered a(n) ______.

answer

price taker

question

Economists categorize businesses into ______, which are defined by characteristics such as the amount of competition, the ability to set price, and the ease of entry.

answer

market structures

question

Laws meant to control monopoly power and to preserve and promote competition are referred to as ______ laws.

answer

antitrust

question

A(n) ______ occurs when one firm's low average total cost or one firm's exclusive ownership of a resource prevents competition.

answer

natural monopoly

question

Things such as patents or copyrights, which make it difficult for a new business to open in a particular market, are considered ______.

answer

barriers of entry

question

A(n) ______ exists when the gov. grants a firm the exclusive right to provide a particular good or service and excludes all others from doing so.

answer

public franchise

question

The market structure that consists of one seller who sells a product that has no close substitutes is called a(n) ______ market.

answer

monopolistic

question

When a seller charges different prices to different buyers for the products it sells, and the price differences do not reflect cost differences, this practice is called ______.

answer

price discrimination

question

A(n) ______ is formed when firms decide to act in a coordinated way to reduce the competition among them and raise their profits.

answer

cartel agreement

question

A market structure characterized by few sellers is called a(n) ______.

answer

oligopolistic market

question

True/False. -- To an economist, the resource category of land would include all the natural resources found in nature, including forests and animals.

answer

true

question

True/False. -- The area consisting of the points on the PPF and below it represents what is unavailable to us.

answer

false

question

True/False. -- Saving when you are young is pointless, since you earn so little compared to later in life.

answer

false

question

True/False. -- Resources satisfy wants.

answer

true

question

True/False. -- If an All-American college basketball player decides to complete his senior year in college rather than sign a contract with the National Basketball Association, his opportunity cost would be the dollar amount of the contract he chose not to sign.

answer

true

question

True/False. -- Communism would fall into the socialism category when classifying economic systems.

answer

true

question

True/False. -- One measure of globalization is the dollar amount of exports for a country.

answer

true

question

True/False. -- Communism and socialism have similar characteristics.

answer

true

question

True/False. -- In a socialist economic system, resources are owned and controlled by private individuals.

answer

false

question

True/False. -- Today in North Korea, the government owns almost all the resources in the country.

answer

true

question

True/False. -- People who develop new ways of doing things must overcome obstacles, solve problems, and answer challenging questions.

answer

true

question

True/False. -- A loss is the amount of money by which total costs exceeds total revenue.

answer

true

question

True/False. -- When employers compete for workers, it often drives wages down.

answer

false

question

True/False. -- Enterpriser is a person with a special talent for searching out and taking advantage of new business opportunities.

answer

false

question

True/False. -- Excludable public goods are those that individuals cannot be physically prohibited from consuming.

answer

false

question

True/False. -- Elasticity of demand deals with the relationship between price and quantity demanded.

answer

true

question

True/False. -- Chocolate bars, tropical vacations, and automobiles are all elastic goods.

answer

true

question

True/False. -- If a good has many substitutes, it can be considered inelastic.

answer

false

question

True/False. -- If you eat six slices of pizza, you are likely to get the same satisfaction from the last piece as you enjoyed like the first piece.

answer

false

question

True/False. -- There is an inverse relationship between price and quantity demanded according to the law of demand.

answer

true

question

True/False. -- The law of supply states that consumers will purchase more at low prices.

answer

false

question

True/False. -- The law of supply can be stated in words, numbers, and picture form.

answer

true

question

True/False. -- A firm's supply curve and the market supply curve are different from each other.

answer

true

question

True/False. -- Weather can have an impact on both agricultural and nonagricultural goods.

answer

true

question

True/False. -- Supply refers to the number of units of a good produced and offered for sale at a specific price.

answer

false

question

True/False. -- If you observe extremely long lines to purchase tickets for an event, you would conclude that the tickets office has calculated the equilibrium price perfectly.

answer

false

question

True/False. -- In general, no matter where you go in the United States, the price of a loaf of bread is approximately the same.

answer

true

question

True/False. -- Decision makers in Washington D.C. decide how much corn and wheat will be grown in the United States.

answer

false

question

True/False. -- A price ceiling creates a shortage in the market.

answer

true

question

True/False. -- Price controls bring about more exchange than would exist without them.

answer

false

question

True/False. -- The triangle symbol when used in economics represents "divided by."

answer

false

question

True/False. -- Labor is an example of a variable cost.

answer

true

question

True/False. -- Economists believe that a business should continue to produce additional units of it's good until MR is equal to MS.

answer

false

question

True/False. -- Specialization increases production.

answer

true

question

True/False. -- The major disadvantage of a sole propritorship is limited liability.

answer

false

question

The opportunity cost of something is ______. a) the dollar value of the item b) less than the dollar value of the item c) more costly to the poor d) what you give up to get the item

answer

d

question

The marginal cost of something is ______. a) never greater than the marginal benefit b) the opportunity cost minus the actual cost c) the cost to produce one additional unit d) an intangible resource

answer

c

question

A production possibilities frontier shows ______. a) all possible combinations of two goods an economy can produce b) all the possible production of one particular good c) all possible combinations of all the goods that an economy can produce d) all the possible combinations of four goods an economy can produce

answer

a

question

If you are making decisions at the margin, you are ______. a) selecting either all or nothing at all b) confused about what to do c) comparing the extra benefit to the extra cost d) all of the above

answer

c

question

Things that can be felt or touched are ______. a) real b) intangible c) renewable d) tangible

answer

d

question

Scarcity exists when ______. a) things are rare b) prices change c) there is less of a good than people would like to have d) there is an unlimited supply of a good

answer

c

question

Which of the following is scarce? a) resources b) clothing c) cars d) all of the above

answer

d

question

When a society spends money on national defense, there is ______. a) A trade-off, since that money cannot be used for a school or a bridge b) no trade-off, since everybody benefits from national defense c) A trade-off during peacetime, but not during wartime d) no trade-off, since it is not a personal decision

answer

a

question

Scarcity exist because ______. a) resources are limited and wants are limited b) wants are unlimited and resources are unlimited c) wants can be satisfied and resources are unlimited d) resources are limited and wants are unlimited

answer

d

question

The cost of going to college is ______. a) whatever the student would have been doing if not attending college b) nothing, since a degree will eventually earn more for a student later c) the bill for tuition, books, dorm, food, and transportation to college d) nothing for a student who receives a scholarship

answer

a

question

On the accompanying production possibilities graph, what point or points are not feasible? a) C b) D c) A,B,C d) E

answer

d

question

Incentives include ______. a) speeding tickets b) grades c) taxes d) all of the above

answer

d

question

According to this textbook, and example of a nonrenewable resource is ______. a) oil b) crops c) timber d) animals

answer

a

question

Which of the following is a renewable resource? a) oil b) coal c) natural gas d) timber

answer

d

question

Mandatory seatbelt laws have ______. a) saved lives b) cost lives c) impacted driver behavior d) all of the above

answer

d

question

The question of what goods will be produced must be answered because ______. a) some countries are poor and must choose what to produce b) consumers would like to have these goods c) scarcity exists d) Command economies need to write a plan

answer

c

question

How a society answers the three economic questions defines ______. a) its place in the global economy b )its economic system c) its income distribution d) whether it is a pure or mixed economy

answer

b

question

Resources are owned and controlled by private individuals in what type of economic system? a) a free enterprise or market economic system b) a socialist economic system c) a communist economic system d) a traditional economic system

answer

a

question

In a traditional economy, people ______. a) pass on customs, skills, and cultural beliefs from on generation to the next b) write very detailed economic plans for the future c) have a mix of free enterprise and socialism d) set prices based on the labor theory of value

answer

a

question

According to this textbook, there is a strong relationship between life expectancy and ______. a) outsourcing b) globalization c) climate d) government control

answer

b

question

A command economy is ______. a) like capitalism b) run by individuals and businesses c) not concerned by the three economic questions d) a particular type of socialist economic system

answer

d

question

Karl Marx is best known for writing ______. a) The Wealth of Nations b) War and Peace c) Das Kapital d) Globalization Facts

answer

c

question

Adam Smith believed ______. a) in the labor theory of value b) that people's actions are led by "an invisible hand" c) that capitalists exploited workers d) that surplus value should go to the workers

answer

b

question

The major differences between free enterprise and socialism include ______. a) ownership of resources and the government's role in the economy b) economic planning and income distribution c) controlling prices and honoring private property d) all of the above

answer

d

question

Globalization leads to ______. a) closer connections between countries through trade b) increased interest rates c) spread of socialism in the world d) closer connections between countries through trade

answer

d

question

Globalization began to occur ______. a) two decades ago b) in the mid-1800s to the late 1920s c) during world war I d) during the great depression

answer

b

question

As a result of globalization, which of the following have increased ______. a) foreign exchange trading b) foreign direct investment c) membership in the World Trade Organization(WTO) d) all of the above

answer

d

question

Critics of globalization argue that ______. a) trade will increase too rapidly b) technology will lag c) large corporations will take over d) tariff rates will increase

answer

c

question

Is the way all income in a country is divided among different groups of income earners ______. a) income split b) income distribution c) surplus value d) vision

answer

b

question

It describes work done for a company by persons other than the original company's employees in a country other than the one in which the company is located. a) outshoring b) onshoring c) Jersey shore d) offshoring

answer

d

question

The responsibilities of people in a free enterprise economy include ______. a) being truthful b) obeying the law c) open disclosure d) all of the above

answer

d

question

Which of the following is not a feature of free enterprise? a) private property b) public property c) voluntary exchange d) competition

answer

b

question

Economist believe that people respond to ______. a) the wishes of the government b) speeches from politicians c) monetary incentives d) requests from policy makers

answer

c

question

On the circular flow diagram, tax dollars flow to the government from ______. a) households and businesses b) foreign countries c) households d) businesses

answer

a

question

Although there are no guarantees in a free enterprise system, it offers ______. a) success b) freedom c) high incomes d) government backing

answer

b

question

Which of the following is a private good? a) bicycle b) court c) school d) park

answer

a

question

A person who receives the benefits of a good without paying for it is called a ______. a) bum b) freeloader c) free rider d) thief

answer

c

question

Which of the following is a public good? a) hamburger b) car c) post office d) beauty shop

answer

c

question

Which of the following products have been created by entrepreneurs to help customers economize on time? a) computers b) microwaves c) cell phones d) all of the above

answer

d

question

The circular flow has two loops. What do they represent? a) the flow of dollars and the flow of loans b) the flow of goods and the flow of services c) Jobs and incomes d) the flow of goods and services and the flow of dollars

answer

d

question

Which of the following is not a result of competition? a) lower wages b) bigger selection of products c) better quality goods d) lower prices

answer

a

question

Businesses prefer to produce ______. a) excludable public goods b) nonexcludable public goods c) nonexcludable private goods d) all of the above

answer

a

question

The government will provide nonexcludable public goods and pay for them with ______. a) interest b) bonds c) taxes d) savings

answer

c

question

National defense is a good example of a public good because ______. a) individuals can't afford to arm themselves properly b) everyone wants to be protected c) there aren't enough private security companies to protect us d) it is difficult to exclude people rom receiving the benefits from national defense once it is provided

answer

d

question

Which of the following is an externality? a) a neighbors dog barking b) pollution from a local factory c) a neighbor landscaping his yard d) all of the above

answer

d

question

A market is any place ______. a) where buyers and sellers meet b) where only sellers offer goods for sale c) with a sign designating a store d) where fruits and vegetables are sold

answer

a

question

Demand curves ______. a) slope upward from left to right b) slope downward from left to right c) show a positive relationship d) slope downward from right to left

answer

b

question

Which of the following could increase demand for a good? a) higher birthrate b) increased immigration c) higher prices in the future d) all of the above

answer

d

question

A shift of the demand curve represents ______. a) a movement in the demand curve b) a change in the quantity demanded c) a change in demand d) all of the above

answer

c

question

Who determines whether a good is normal or inferior? a) individuals b) sellers c) government d) all of the above

answer

a

question

What will happen in the car market if consumers expect higher prices in the near future? a) the demand for cars will decrease b) the demand for cars will increase c) the supply for cars will drop d) the demand for cars will not change

answer

b

question

If the number of buyers in the market increases, which of the following will happen? a. the supply in the market will increase b. the demand in the market will decrease c. the demand in the market will increase d. the supply in the market will decrease

answer

c

question

Market demand represents ______. a) all individual demand curves added together b) all the producers in the market c) all buyers and sellers in the market d) all of the above

answer

a

question

If the demand curve shifts to the left, it means ______. a) sellers want to produce less b) buyers want to buy less c) there is less of the product d) there is more of the product

answer

b

question

Which of the following will not change the demand for a product? a. change in the price of a substitute b. change in income c. change in expectations about the future price of the product d.change in the price of the product

answer

d

question

A normal good ______. a) has not been damaged b) will be purchased, regardless of changes in income c) will be in higher demand if a persons income increases d) will be in higher demand if a persons incomes decreases

answer

c

question

When goods are substitutes, which of the the following occurs? a) the demand for one good moves in the opposite direction as the price of the other good b) the demand for one good moves in the same direction as the price of the other good c) the demand for one good does not affect the price of the other d) the supply of one good moves in the opposite direction as the price of the other good

answer

b

question

A change in quantity demanded can be caused by ______. a) income b) preferences c) price d) price of a substitute

answer

c

question

Elasticity of demand measures ______. a. how much buyers respond to a change in income b.how much sellers respond to a change in price c. how much buyers respond to a change in price d. how much sellers respond to a change in income c

answer

c

question

If a decrease in income increases the demand for a good, the good is ______. a) inferior b) normal c) a complement d) substitute

answer

a

question

The law of supply says that ______. A. the quantity supplied of a good rises when the price of the good rises. B.The quantity supplied of a good decreases when the price of the good rises C. Sellers prefer low prices to high prices D. a seller must have both the willingness and ability to produce a good

answer

a

question

A supply schedule includes ______. a. price and quantity supplied at each price b. the producer's cost c. shifts to the left or right of the supply curve d. both a and b

answer

a

question

If sellers do not respond to a change in price, supply ______. a. elastic b.inelastic c.unit-elastic d.none of the above

answer

b

question

When quantity supplied changes by the same percentage as price, it is ______. a. elastic b.inelastic c.unit-elastic d. a subsidized good

answer

c

question

A vertical supply curve indicates that ______. a. a change in price will have no effect on the quantity supplied b. there is a direct relationship between price and quantity supplied c.producers will increase their production d.a price change will have a significant impact on the quantity supplied

answer

a

question

Higher per-unit production costs would cause producers to ______. a. want to produce more b. hire more workers c. supply more d. supply less

answer

d

question

On the accompanying graph, which of the following correctly represents the supplier's response to a decrease in the cost of production? a) a shift from S? to S? b) a shift from S? to S? c) movement from A to B d) movement from C to B

answer

(look on old test...chapter 5)

question

If the price of a product increases, we would expect the accompanying graph to show ______. a) a shift from S? to S? b) a shift from S? to S? c) movement from A to B d) movement from C to B

answer

(look on old test...chapter 5)

question

The law of supply is shown on a graph as ______. a. an inverse relationship b. a direct relationship c. a shift of the curve to the right or left d. a shift of the curve up or down

answer

a

question

In the equation for elasticity of supply, when the numerator is larger than the denominator, we know that ______. a. supply is not very responsive to price change b. supply is unit-elastic c. supply is inelastic d. supply is elastic

answer

d

question

If the percentage change in price is equal to 50 percent and the percentage change in quantity supplied is 25 percent, the elasticity of supply is ______. a. unit-elastic b. elastic c. inelastic d. not affected

answer

c

question

If a new quota were imposed on a seller's product, which of the following would show the sellers response? a) a shift from S? to S? b) a shift from S? to S? c) movement from A to B d) movement from C to B

answer

(look on old test...chapter 5)

question

More sellers entering a market would look like ______. a) a shift from S? to S? b) a shift from S? to S? c) movement from A to B d) movement from C to B

answer

(look on old test...chapter 5)

question

If prices fall for a product, we would expect the graph to show ______. a) a shift from S? to S? b) a shift from S? to S? c) movement from A to B d) movement from C to B

answer

(look on old test...chapter 5)

question

An advance in technology would be illustrated on a graph as ______. a) a shift from S? to S? b) a shift from S? to S? c) movement from A to B d) movement from C to B

answer

(look on old test...chapter 5)

question

Equilibrium price is ______. a) any price that doesn't cause a surplus b) any price that doesn't cause a shortage c) the price that occurs when the quantity demanded is equal to the quantity supplied d) any price that sellers decide to set

answer

c

question

Which of the following is true when there is a shortage in the market? a) prices may rise b) prices may fall c) prices stay the same and producers cut production d) the market is in equilibrium

answer

a

question

If all else remains the same, a decrease in the demand for a good ______. a) will increase sales b) will increase the price c) will decrease the price d) will cause a shortage

answer

c

question

If a greater supply of labor were combined with decreased demand for labor, we might expect ______. a) wages to rise b) wages to fall c) wages to remain the same d) none of the above

answer

b

question

In a free enterprise market, who or what allocates resources? a) producers b) consumers c) prices d) the government

answer

c

question

If there were a shortage of nurses, we would expect ______. a) the wages of nurses to increase b) the wages of nurses to decrease c) a decreased demand for nurses d) none of the above

answer

a

question

Inventory includes which of the following? a) supply and demand b) total sales c) stock on hand d) quantity sold multiplied by price

answer

c

question

Equilibrium can be expressed as ______. a) Qs;Qd b) Qd;Qs c) Qd=Qs d) Qd;Qs

answer

c

question

Price controls ______. a) decrease the amount of exchange that occurs b) increase the amount of exchange that occurs c) don't really have an impact on exchange d) increase the opportunities people have to make themselves better off

answer

a

question

A price floor results in ______. a) a shortage b) a surplus c) equilibrium d) a shift of the curve

answer

b

question

A legal maximum price at which a good can be sold is a ______. a) price subsidy b) price ceiling c) price floor d) equilibrium price

answer

b

question

At the equilibrium price, which of the following is true? a) buyers and sellers are satisfied b) buyers have bought everything they wanted to buy c) sellers have sold everything they wanted to sell d) all of the above

answer

d

question

In the accompanying graph, which area shows a surplus? a) area 1 b) area 2 c) area 3 d) area 4

answer

(look on old test...chapter 6)

question

In the accompanying graph, which area shows a shortage? a) area 1 b) area 2 c) area 3 d) area 4

answer

(look on old test...chapter 6)

question

The quantity of a good that is bought and sold in a market that is in equilibrium is a ______. a) equilibrium set b) equilibrium unit c) equilibrium quantity d) equilibrium price

answer

d

question

A business is legally distinct from its owners and considered an entity in its own right is a ______. a) partnership b) proprietorship c) corporation d) franchise

answer

c

question

A business organization that can conduct business in its own name and can own property as if it were an individual is a ______. a) proprietorship b) corporation c) partnership d) franchise

answer

b

question

Economists believe that the major goal of each firm is to ______. a) minimize cost b) maximize profit c) sell as much as possible d) price the product as high as possible

answer

b

question

The disadvantage of a proprietorship that could directly affect the owner's personal assets is ______. a) unlimited life of the company b) sole responsibility c) unlimited liability d) limited growth potential

answer

c

question

Which of the following business organizations combines 2 or more people's specializations with equal decision-making authority? a) partnership b) proprietorship c) corporation d) franchise

answer

a

question

Corporations are able to borrow large sums of money by ______. a) issuing bonds b) borrowing from government c) selling stock d) borrowing from friends and family

answer

a

question

Bondholders are different from stockholders because they ______. a) receive predetermined interest b) have 1 vote for every share of stock they own c) are owners of the corporation d) receive dividends

answer

a

question

To purchase a franchise, the person or group buying it must ______. a) pay an initial fee b) pay a royalty or percentage of the profits for a number of years c) agree to meet certain quality standards d) all of the above

answer

d

question

Marginal decisions are ______. a) all or nothing decisions b) aggregate decisions c) incremental decisions d) not personal decisions

answer

c

question

The cost to a firm that changes according to the number of units produced is the ______. a) fixed cost b) total cost c) variable cost d) marginal cost

answer

c

question

Profit or loss is computed by ______. a) subtracting total cost from total revenue b) multiplying the price of the good times the quantity of units of the good sold c) subtracting variable cost from fixed cost d) subtracting marginal cost from the additional cost of a unit of production

answer

a

question

The cost to produce one additional unit is called ______. a) average cost b) variable cost c) fixed cost d) marginal cost

answer

d

question

Total costs divided by quantity produced equals the ______. a) average total cost b) marginal cost c) fixed cost d) average variable cost

answer

a

question

A firm will increase production when ______. a) average total cost is less than marginal cost b) marginal revenue is less than marginal cost c) marginal cost is less than average total cost d) marginal cost is less than marginal revenue

answer

d

question

What are the 2 critical pieces of information needed before a firm can decide how many units to produce? a) marginal cost and marginal revenue b) marginal cost and average total cost c) fixed cost and variable cost d) average total cost and average fixed cost

answer

a

question

In a perfectly competitive market, products must be ______. a) unique b) slightly differentiated c) identical d) both a and c

answer

c

question

When it comes to determining price, sellers in a perfectly competitive market have ______. a) no control b) considerable control c) limited control d) varied control, depending on circumstances

answer

a

question

When a single producer has complete control over one kind of good or service, the market structure is called ______. a) perfectly competitive b) monopolistic c) monopolistic competitive d) oligopolistic

answer

b

question

When only a few producers and their products dominate an industry, the market structure is called ______. a) perfectly competitive b) monopolistic c) monopolistic competitive d) oligopolistic

answer

d

question

Maximizing profit is the goal of ______. a) perfectly competitive markets b) monopolistic markets c) monopolistic competitive markets d) all of the above

answer

d

question

Which of the following industries practice price discrimination? a) movie theaters b) pharmacies c) restaurants d) all of the above

answer

d

question

A major difference between perfectly competitive markets and monopolistic competitive markets is that with monopolistic competition ______. a) there are few sellers b) products are differentiated; not identical c) barriers of entry are exist d) forming cartels is a possibility

answer

b

question

In monopolistic competitive markets, firms spend considerable amounts of money on ______. a) advertising b) packaging c) differentiating their product d) all of the above

answer

d

question

In the soft drink industry, if 2 companies account for about 80 percent of sales, then the market would be considered ______. a) perfectly competitive b) monopolistic c) monopolistic competitive d) oligopolistic

answer

d

question

Firms protected from competition by public franchises, patents, or copyrights are called ______. a) natural monopolies b) government monopolies c) resource monopolies d) antitrust monopolies

answer

b

question

In what market structure are sellers "price takers?" a) perfectly competitive b) monopolistic c) monopolistic competitive d) oligopolistic

answer

a

question

Antitrust laws are designed to ______. a) decrease competition b) increase competition c) protect copyright and patent laws d) none of the above

answer

b

question

In 1890 Congress passed an act that reduced the ability of companies to restrain trade by merging and forming a trust. This act is called the ______. a) Clayton Act b) Robinson-Patman Act c) Sherman Act d) Federal Trade Commission Act

answer

c

question

For a firm to practice price discrimination, it must ______. a) find a way to determine which consumer is willing to pay more than another b) have a unique product c) have barriers of entry d) be monopolistic

answer

a

question

When deciding between jobs, people consider ______. a) the salary b) vacation time c) their satisfaction with the work d) all of the above

answer

d

question

If there were a sharp increase in demand for Hershey's chocolate bars, we might expect ______. a) an increase in demand for workers b) a decrease in demand for workers c) no change in the demand for workers d) none of the above

answer

a

question

The demand for labor could decrease if ______. a) the products that workers make become popular b) there is a decrease in the number of foreign workers c) there is a decrease in demand for the product that workers make d) there is a decrease in the supply of labor available c

answer

c

question

One of the key elements in the productivity of workers is ______. a) their age b) their education and training c) their grades from school d) their previous job

answer

b

question

Minimum wage is ______. a) a government set wage floor b) a government set wage ceiling c) an equilibrium wage d) Both a and c

answer

a

question

The first minimum wage loss at an hourly rate of ______. a) two dollars b) one dollar c) 50 cents d) 25 cents

answer

d

question

An economist would explain the huge salaries commanded by entertainers and professional athletes as ______. a) the result of union negotiations b) famous people getting anything they want c) the result of supply and demand d) a tragedy

answer

c

question

If minimum wage is set above equilibrium wage rate, it will ______. a) shift the demand curve for labor to the right b) result in fewer workers entering the labor market c) result in employers being willing to hire fewer workers d) cause a shortage in the labor market

answer

c

question

Another name for money wage is ______. a) real wage b) nominal wage c) minimal wage d) both a and c

answer

b

question

Increasing your educational level can ______. a) increase your income b) increase your probability of remaining employed c) increase your lifetime income d) all of the above

answer

d

question

A union is ______. a) a worker association limited to professions with similar skills b) the decision of one business to merge with another c) a group of employers to join together to bargain with employees d) a worker association that bargains with employers for wages and working conditions

answer

d

question

If the union and the employer are unable to reach an agreement, the union may ______. a) sue the employer in court b) strike c) retreat d) raise dues

answer

b

question

The National Labor Relations Board ______. a) enforces right to work laws b) investigates unfair labor practices c) restrains the use of injunctions d) calculates the employment rate

answer

b

question

The American Federation of Labor (AFL) and the Congress of Industrial Organizations (CIO) ______. a) consisted of workers with similar skills b) merged in the 1950s c) have developed a strong relationship that continues today d) have doubled their membership over the years

answer

b

question

Government regulations ______. a) protect workers against occupational injuries and illnesses b) specify minimum standards for potentially unsafe products c) increase costs to taxpayers d) all of the above

answer

d

question

The price of labor is called the ______. a) price rate b) wage rate c) equilibrium price d) cost rate

answer

b

question

The supply curve for labor is ______. a) upward sloping, left to right b) upward sloping, right to left c) downward sloping, left to right d) none of the above

answer

a

question

If the quantity supplied of labor is more than the quantity demanded, then ______. a) the demand for the product increases b) the demand for the product decreases c) the wage rate falls d) the wage rate rises

answer

c

question

If the wage rate is at equilibrium, then ______. a) wages will rise b) wages will fall c) wages will move along the supply curve d) wages will stay the same

answer

d

question

A shortage of workers exists when ______. a) the supply of workers exceeds the demand b) the demand for workers exceeds the supply c) the number of workers supplying their labor equals the demand for labor d) the supply curve up for the product a firm produces shifts to the left

answer

b

question

Derived demand for labor would exist when ______. a) there is an increase in the product price b) consumers select a substitute product c) there is an increase in demand for the product d) wage increases

answer

c

question

Differences in wages usually exist because of differences in ______. a) worker productivity b) the demand for the good you produce c) experience d) both a and c

answer

d

question

The US Congress passed the first minimum-wage law in the ______. a) 1890s b) 1930s c) 1950s d) 1970s

answer

b

question

In 2005 the hourly federal minimum wage was ______. a) $2.15 b) $3.25 c) $4.15 d) $5.15

answer

d

question

A real wage is ______. a) a person's wage rate in terms of what it buys b) a person's wage rate in terms of other employees c) a person's salary divided by the number of hours they work d) a person's salary after taxes

answer

a

question

Which of the following is true regarding unions? a) unions negotiate agreements with employers for the benefit of their members b) unions are steadily increasing their membership percentage on the labor force c) unions assist members in receiving higher wages and benefits d) both a and c

answer

d

question

Typically, union members can earn more than nonunion workers for similar skills by ______. a) less than 5% b) 5 to 10% c) 10 to 15% d) 15 to 20%

answer

c

question

Right to work laws ______. a) give workers the right to select whether or not to join the union b) give employers the right to work in place of striking union members c) require employers to make union membership requirement for employment d) enforces workers right to unionize

answer

a

question

The Wagner Act of 1935 ______. a) requires employers to bargain with unions in good faith b) enforces antitrust laws against unions c) made it illegal for employers to interfere with their employees rights to organize or join a union d) both a and c

answer

d

question

The Knights of Labor ______. a) was the first union, organized in 1869 b) includes a large number of skilled workers today c) was formed under the leadership of Samuel Gompers d) was a first union formed in England

answer

a

question

Shirking could be described as ______. a) completing assigned tasks b) doing less than an equal share of tasks c) efficiently completing tasks d) coordinating tasks

answer

b

question

The disadvantages of partnerships include ______. a) shared decision making b) unlimited liability c) limited life d) all of the above

answer

d

question

A strawberry farmer who has used more and more nutrients on her fixed plot of land, but doesn't see an increase in her strawberry crop, is experiencing the law of ______. a) diminishing marginal utility b) diminishing marginal returns c) demand d) supply

answer

b

question

As a firm increases the quantity produced, its ______. a) fixed costs increase b) variable costs increase c) monopolistic competitive d) oligopolistic

answer

d

question

When deciding between jobs, people consider ______. a) the salary b) vacation time c) their satisfaction with the work d) all of the above

answer

d

question

If there were a sharp increase in Hershey's chocolate bars, we might expect ______. a) an increase in demand for workers b) a decrease in demand for workers c) no change in the demand for workers d) none of the above

answer

a

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