What is a positive externality

An economic side effect that generates unexpected benefits

An example of a shortage is limited amounts of

Food available because trucks carrying it are on strike

Which of the following is an example of structural unemployment

Lack of Education or training for skills in demand

How would the economy of the United States likely be characterized

Mixed but on the side of free market

Which of the following categories do mediation arbitration and collective-bargaining belong

Negotiations between unions and Company leaders

How is the federal income tax a progressive tax

The higher the income the higher percentage the person pays

What determines the price and quantity produced of most Goods

The interaction of supply and demand

What is the basic principle of the law of demand

When a Goods price is lower, people will buy more of it

Which of the following is not a key economic question

How do you ensure goods and services are paid for

How is future price related to current demand?

If price is expected to rise current demand will rise

Which of the following is an advantage of a sole proprietorship

It is the least-regulated form of business organization

The purpose of a free enterprise system is to

Give consumers freedom to make economic choices

Which of the following is a decision that can be made at the margin

Whether or not to hire new workers

How have right-to-work laws affected union membership

They have decreased union membership

What is the Consumer Price Index

Index determined bye price of standard good bought by consum

According to the G&B example, if a country spends more on military goods, what will happen?

The country will have less to devote to consumer goods

What does it mean that corporations are taxed twice

Corporations taxed on income and stockholders on dividends

According to the law of supply, the higher the price

The larger the quantity produced

What is collective bargaining

Union & company representative meet to negotiate a contract

Why is a sales tax a regressive tax

It is a higher percentage of income if you earn less money

A major advantage of a franchise is that

The parent company provides guidance on running the business

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Economics final review

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Questions 35

Answers

1
What is a positive externality
Way to generate trade that benefit those from other country
An extra payment to welfare recipients
An economic side effect that generates unexpected benefits
Cash flow that benefits government and business who interact
2
When a consumer is able and willing to buy a good or service he or she creates what
Consumption
Elasticity
Allocation
Demand
3
An example of a shortage is limited amounts of
H2O available for irrigating a crop is used for other crops
Food available because few people want it
Food available because trucks carrying it are on strike
Labor available because workers have other jobs
4
Which of the following is an example of structural unemployment
Lack of Education or training for skills in demand
People taking time looking for work after finishing school
A downturn in the business cycle
Industries slowing or shutting down at certain times of year
5
How would the economy of the United States likely be characterized
Mixed but on the side of free market
Mixed but on the side of centrally planned
Free market
Centrally planned
6
Every decision involves trade-offs because
Some decisions are made for business others for society
Wants and needs change
Resources are limited
Some people have more money than others
7
Which of the following categories do mediation arbitration and collective-bargaining belong
Contractual obligations of labor-management
Settlement techniques involving a neutral mediator
Transactions between unions and government regulators
Negotiations between unions and Company leaders
8
What shows the quantities of products demanded at each price by all consumers in a market
A market pricing list
Inelasticity and consumption list
A schedule of consumer prices
A market demand schedule
9
Which of the following is a disadvantage of sole proprietorship
Difficult to start up
Lack of permanence
Legal constraints
High taxes
10
How is the federal income tax a progressive tax
Children pay no taxes regardless of their income
Person with higher income pays more taxes lower percentage
Married people file together pay more than a single person
The higher the income the higher percentage the person pays
11
What determines the price and quantity produced of most Goods
The consumer's perception of necessity
The availability of substitutes for the goods
The quality of the goods that are produced
The interaction of supply and demand
12
What is the basic principle of the law of demand
Services are vinterest in the same way the goods are
Everyone has limited income that they will spend
Higher the price the more people will want the good
When a Goods price is lower, people will buy more of it
13
Which of the following is not a key economic question
What goods and services should be produced
How should these goods and services be produced
Who consumes these goods and services
How do you ensure goods and services are paid for
14
In what kind of economy does the government make all the decisions
Command
Socialist
Free enterprise
Laissez-faire
15
How is future price related to current demand?
Future price is not related to current demand
If price is expected to rise current demand will drop
If price is expected to rise current demand will rise
If price is expected to fall current demand will rise
16
Full employment is the level of employment reached when there is no_____ unemployment
Seasonal
Structural
Frictional
Cyclical
17
Which of the following is an advantage of a sole proprietorship
no one is responsible if it fails
It is the least-regulated form of business organization
It is easy to get financing to start one
it is an easy way to make a
18
The purpose of a free enterprise system is to
Create political campaign slogans
Give consumers goods and services free of charge
Give consumers freedom to make economic choices
Eliminate economic choices
19
Resources used to make all goods and services are the
Production trade-off
Opportunity cost
Factors of production
Production possibilities
20
Which of the following is not an example of a public good
National Park
A shopping mall
Dam
Highway
21
An economy that uses resource to make the greatest possible number of goods and services
Using opportunity cost well
Globally aware
Underutilized
Efficient
22
Which of the following is a decision that can be made at the margin
Whether or not to build an extra room on your home
Whether to have a dog or cat as a pet
Whether or not to go on vacation
Whether or not to hire new workers
23
Why are all goods and services scarce
Some people want more Goods than others
Some things are needs and others are wants
Some Goods cost more than others
All resources are scarce
24
How have right-to-work laws affected union membership
They have had no effect on Union membership
They have decreased union membership
They have kept membership rates steady
They have increased union membership
25
All the possible Alternatives that are rejected when a choice is made are
Goods
Trade-offs
Opportunity costs
Services
26
What is the Consumer Price Index
A measure of prices of Housing and rental costs
Index of prices of items used by manufacturers and retailers
Index of cost of living for all us consumers
Index determined bye price of standard good bought by consum
27
According to the G&B example, if a country spends more on military goods, what will happen?
Country will have more resources to spend on consumer goods
Country will be forced to make trade offs in military spends
Country will have an= amount of $ to spend on consumer goods
The country will have less to devote to consumer goods
28
What does it mean that corporations are taxed twice
Corporations have more legal rules and harder to setup
Corporations pay more taxes than a partnership
Corporations taxed on income and stockholders on dividends
Corporations apply for Charters which are expensive
29
According to the law of supply, the higher the price
The more the availability of a good is reduced
The more consumers are willing to pay
The larger the quantity produced
The smaller the quantity produced
30
What is the term for the total value of all goods and services produced in a particular economy
Standard of living
net worth
Open market value
Gross domestic product
31
The doctrine that government generally should not intervene in the marketplace is
Laissez-faire
Disequilibrium
Macroeconomics
Self-interest
32
What is collective bargaining
Union & company representative meet to negotiate a contract
Organization of workers represent different occupations
Agreement to allow everyone to be part of negotiations
Situation in which rights of Labor I've been set aside
33
Why is a sales tax a regressive tax
It is a higher percentage of income if you earn less money
It is a different amount for all incomes
It is a different amount for low incomes
It is a higher percentage of income if you earn more money
34
A major advantage of a franchise is that
The parent company provides guidance on running the business
The franchise can choose their own supplies
The parent company has strict operating standards
The franchise can launch new product lines
35
Which is an example of using physical capital instead of human capital to get a job done
A licensed practical nurse
A server in a food restaurant
An automatic teller machine
An accountant balancing spreadsheets

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