One of the disadvantages of forming a corporation is that

the corporation is subject to many government regulations.

Which of the following is an advantage of a multinational?

They produce tax revenue for the countries where they do business.

A person who wishes to incorporate a business needs to

file for permission with the government.

Which of the following statements best explains why workers began to form unions?

A united workforce was more likely to bring about changes in the workplace.

Which of the following is an accurate statement about minimum wage laws in the United States?

Some states have established a higher-than-federal minimum wage

During the Great Depression, union promoters _________.

renewed their efforts because hard times united workers.

temporary investment leasing/renting company's successful business model

A venture capitalist's main goal is usually to

get a good return on an investment.

What is the main purpose of incubators?

providing entrepreneurs with training to be successful

How does inflation affect the minimum wage?

It decreases the buying power of the wage.

Which of the following were the first types of unions formed in the United States?

craft unions and industrial unions

Which of the following is an advantage of sole proprietorship?

All of the above statements are true.

Which of the following were a direct result of union activity?

a higher rate of pay for overtime hours worked

One of the disadvantages of forming a corporation is that

the corporation is subject in many government regulations.

Which of the following is true about nonprofit organizations?

They work in a businesslike way to promote member interests.

Which of the following characterizes the union started by Cesar Chavez?

Grew numbers/strength/improved wages/working conditions for migrant workers

Friedrich August von Hayek promoted an economic system with

a price system not controlled by government intervention.

Which activity is illegal in a state with a right-to-work law?

requiring union membership as a condition of employment

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Unit 3 Exam Review Economics

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Questions 72

Answers

1
A credit union is an example of a
consumer cooperative.
service cooperative.
consumer cooperative.
service cooperative.
2
Which of these offers an explanation for why a less productive worker might make more than his or her peers?
the equilibrium wage rate
seniority
the market theory of wage determination
fact-finding
3
Which of the following tactics is used only by management?
lockout
picket
negotiation
boycott
4
Which of the following represents an attempt to prevent erosion of the value of the minimum wage?
increasing the minimum wage
freezing the wage
freezing hiring
increasing hiring
5
One of the disadvantages of forming a corporation is that
the corporation can sell stock to raise revenue.
the corporation pays limited taxes
the corporation provides limited liability for owners.
the corporation is subject to many government regulations.
6
The market theory of wage determination states that salaries are best set by management.
True
False
7
Which best describes unions in the United States over the last 50 years?
declined in influence
grew steadily
mostly outlawed
reached more industries
8
Which of the following is an advantage of a multinational?
They produce tax revenue for the countries where they do business.
They use cheap labor.
They export scarce natural resources.
They help preserve traditional ways of life.
9
Which of the following best expresses the idea that higher education often results in higher earnings?
the theory of negotiated wages
the market theory of wage determination
signaling theory
fact-finding
10
When a union negotiates pay and other job-related matters, this is called
accessing resources
going on strike
cooperative bargaining
collective bargaining
11
A person who wishes to incorporate a business needs to
do all of the above.
find stockholders.
file for permission with the government.
pay the government dividends.
12
Which kind of union organization was stopped by the Taft-Hartley Act?
modified union shop
agency shop
union shop
closed shop
13
In collective bargaining negotiations, who represents the interests of the workers?
a fact-finder
a third party
elected company officials
elected union officials
14
Partnerships are the most numerous form of business organization in the United States.
False
True
15
A business's net income is defined as
total income after expenses.
total sales before expenses.
total expenses before sales.
total dividends paid to investors.
16
Which of the following statements best explains why workers began to form unions?
A well-organized system of workers was more likely to maximize profits.
Introduction of immgrant labor was more ikley to raise workplace standards.
Introduction of unions more likely to offer workers training in new tech.
A united workforce was more likely to bring about changes in the workplace.
17
Which of the following is a term for a labor-dispute settlement tactic used by neither unions nor management?
arbitration
mediation
stoppage
seizure
18
Which of the following is an accurate statement about minimum wage laws in the United States?
Some states have established a lower-than-federal minimum wage
The minimum wage is adjusted by law every five years
Some states have established a higher-than-federal minimum wage
The minimum wage is the same in all parts of the country
19
Limited life applies to
sole proprietorships.
nonprofit organizations.
multinationals.
corporations.
20
During the Great Depression, union promoters _________.
stopped organizing labor because the economy slowed.
had no success because most people did not have jobs.
tried to organize labor but workers refused to cooperate.
renewed their efforts because hard times united workers.
21
A franchise is
temporary investment leasing/renting company's successful business model
temporary investment stock ownership in company's successful business model
temporary investment through a general partnership in a start-up business.
temporary investment through a limited partnership in a start-up business.
22
Unlimited liability is one of the main advantages of a sole proprietorship.
True
False
23
Which group is least affected by a glass ceiling?
minority women
white women
minority men
white men
24
A venture capitalist's main goal is usually to
help individuals achieve their dreams.
teach entrepreneurs managerial skills.
get a good return on an investment.
help their communities.
25
The easiest type of business to start is a sole proprietorship.
True
False
26
What is the main purpose of incubators?
providing entrepreneurs with training to be successful
both A and C
helping entrepreneurs think of new business ideas
helping entrepreneurs find investors
27
Schools, churches, and community organizations are examples of
nonprofit organizations.
cooperatives.
labor unions.
conglomerates.
28
How does inflation affect the minimum wage?
It increases the buying power of the wage.
It decreases the buying power of the wage.
It creates a conversion of wage from constant dollars to current dollars
It creates a conversion of wage from current dollars to constant dollars.
29
To get a picture of a business's overall expenses and profits, you should look at its
dividends.
depreciation.
income statement.
inventories.
30
Which cause of the wage gap between men and women was addressed by the Equal Pay Act of 1963?
gender distribution among occupations
differences in educational level
discrimination
differences in levels of experience
31
Which of these would most likely produce an exception to the market theory of wage determination?
seizure
signaling theory
the theory of negotiated wages
the equilibrium wage rate
32
Which of the following were the first types of unions formed in the United States?
company unions and industrial unions
craft unions and independent unions
craft unions and industrial unions
company unions and independent unions
33
The Cigar Makers' Union, begun by union leader Samuel Gompers, is an example of which type of union?
company
industrial
right-to-work
craft
34
Kate is an electrician. How would an economist categorize her job?
as semiskilled
as unskilled
as skilled
as professional
35
Corporations have most of the rights of an individual, according to the law.
True
False
36
Which of the following was a response to the growing strength of unions?
right-to-work laws
the Wagner Act
the closed shop
the modified union shop
37
Most mergers take place to improve a company's performance in the eyes of
government regulators.
the employees.
the shareholders.
tax collectors.
38
A grievance procedure is an informal method of settling workplace disputes.
False
True
39
Which of the following is an advantage of sole proprietorship?
The owner keeps all the profits.
All of the above statements are true.
There are almost no requirements to start up a sole proprietorship.
The owner makes all the decisions.
40
Which noncompeting category of labor tends to include the highest-paid workers?
skilled labor
professional labor
unskilled labor
semiskilled labor
41
Which of the following were a direct result of union activity?
an increase in jobs for migrant workers
a higher rate of pay for overtime hours worked
the adoption of immigrations quotas
consumer boycotts
42
One of the disadvantages of forming a corporation is that
the corporation can sell stock to raise revenue.
the corporation pays limited taxes.
the corporation is subject in many government regulations.
the corporation provides limited liability for its owners.
43
Which of the following is true about nonprofit organizations?
They make up an insignificant part of the economy.
Most are informal businesses that are not incorporated.
Results of efforts can be analyzed in same way as for-profit businesses.
They work in a businesslike way to promote member interests.
44
Which of the following characterizes the union started by Cesar Chavez?
It was a company union.
Gave management the opportunity to negotiate with workers to avoid strikes.
Excluded immigrants from workforce and gave more jobs to American workers.
Grew numbers/strength/improved wages/working conditions for migrant workers
45
When two companies that produce the same kind of product merge, this is called a
multinational merger.
conglomeration.
horizontal merger.
vertical merger.
46
Friedrich August von Hayek promoted an economic system with
a price system controlled by government legislation.
a price system not controlled by the global market.
a price system not controlled by government intervention.
a price system controlled by a central bank.
47
Which activity is illegal in a state with a right-to-work law?
denying any qualified worker a job
requiring a higher hourly rate for overtime hours
joining a union
requiring union membership as a condition of employment
48
The income earned by females has only been a fraction of that earned by males partially because of
differences in human capital.
discrimination.
all of these.
the uneven distribution of men and women among various occupations.
49
Which of the following illustrates why the wage gap between women and men is discriminatory?
Equal Pay Act of 1963
giveback
glass ceiling
two-tier wage system
50
In a retail business, the stock held in reserve is called
inventory.
capital.
raw materials.
profits.
51
If a corporation goes out of business, common stockholders get their investment back before preferred stockholders do.
True
False
52
If the activities of a nonprofit organization produce revenues, the organization uses the money to
further its work.
grow the business.
pay dividends to its members.
join a chamber of commerce.
53
Which of the following statements is true about the formation of the American Federation of Labor?
It was formed in response to the Taft-Hartley Act of 1947.
It was formed in 1935 by creating new unions where there had been none.
It was formed in 1886 by combining several existing unions.
Formed in response to the wave of immigration that followed the Civil War
54
Which of these best describes public reaction to the earliest labor organizers?
They were seen as champions of the poor.
They were considered troublemakers.
Most appreciated their efforts on behalf of immigrants.
Voters often pressured them into running for public office.
55
If the activities of a nonprofit organization produce revenues, the organization uses the money to
pay dividends to its members.
grow the business.
join a chamber of commerce.
further its work.
56
Arbitration places a dispute before a third party for a binding settlement.
False
True
57
An organization that buys bulk amounts of goods to distribute to members is a
labor union.
service cooperative.
consumer cooperative.
producer cooperative.
58
The government document that grants permission to establish a corporation is called a
stock certificate.
partnership agreement.
charter.
limited liability agreement.
59
A business run by a single person is a
limited liability corporation.
corporation.
partnership.
sole proprietorship.
60
Which of the following is true of both nonprofit organizations and for-profit corporations?
They both issue stock.
They both pay dividends.
They both pay income taxes.
They both use scarce factors of production.
61
Which statement is the best explanation of the market theory of wage determination?
Worker's pay rate is set by supply of and demand for that worker's skills.
Worker's value in labor market determined primarily by worker's seniority.
Management more willing to pay a high wage to worker w/advanced education.
Management tends to pay a lower wage to workers who support unions.
62
Which of the following was involved in a boycott that was declared illegal?
a coal mining company owned by John D. Rockefeller
the National Football League
a hat manufacturer in Danbury, Connecticut
the National Basketball Association
63
Which of the following is most responsible for increases in the federal minimum wage?
inflation
demand for labor
two-tiered wage system
supply of labor
64
A nonprofit organization that provides services to its members is called a
producer co-op.
consumer co-op.
market co-op.
service co-op.
65
Which of the following partially explains the current decline in union influence?
the decrease in the number of teenagers in the workforce
the increase in the number of women and teenagers in the workforce
the decrease in the number of women in the workforce
the increase of the average level of education among Americans
66
The theory of negotiated wages states that organized labor helps to determine pay rates.
True
False
67
In collective bargaining negotiations, who represents the interests of the workers?
a third party
a fact-finder
elected union officials
elected company officials
68
Which of these would most likely produce an exception to the market theory of wage determination?
signaling theory
seizure
the equilibrium wage rate
the theory of negotiated wages
69
Which of these management strategies has contributed to a deline in union influence?
offering profit-sharing plans to employees
increasing the number of minimum-wage positions available
paying employees in current dollars
establishing glass ceiling hiring and promotion policies
70
Which of the following is a noncash charge?
dividends
wages
depreciation
horizontal merger
71
Where in Colorado did a massacre of protesting workers and their families take place?
Denver
Ludlow
Boulder
Pueblo
72
A venture capitalist's main goal is usually to
help individual's achieve their dreams.
get a good return on an investment.
help their communities.
teach entrepreneurs managerial skills.

Unit 3 Exam Review Economics Flashcards | StudBud