Econ Final
Adam Smith's "invisible hand" works only in a __________________.
market economy
At the equilibrium wage, the _______________.
supply and demand of workers are equal
According to Karl Marx, all of human history has been a struggle between _______________.
upper and lower classes
Corporations and nonprofit organizations both have __________.
a large number of stockholders
The united states has ___________
a modified command economy
The popularity of MP3 players led many broadcasters to begin offering podcasts of popular programs. Which factor that affects demand does this example illustrate?
complements
One fundamental of a market economy is ____________.
consumer sovereignty
The american motor company's decision to stop manufacturing the gremlin automobile can best be described as an example of ________________.
consumer sovereignty
In a command economy, the government ________________.
controls basic industries
The type of business organization that has the greatest access to resources is the _____________
corporation
Higher prices provide an incentive for producers to sell more goods and services because producers need to _____________.
cover their higher costs of production
Unions organized according to the skills of member workers are called _________________.
craft unions
When the price of a good or service falls, consumers usually buy more of it. which law does this statement reflect?
demand
Profit maximizing output occurs when marginal cost equals _______________.
marginal revenue
North Korea's economic problems stem mainly from ___________.
misguided central planning
The market structures that are most likely to use advertising as a way to compete for costumers are ____________________.
monopolistic competition and oligopoly
The market structures with large numbers of buyers and sellers are __________________.
monopolistic competition and perfect competition
A monopoly in which a single supplier is the most efficient way to provide a good or service is a __________________.
natural monopoly
A person who lives downstream from a polluting factory may experience a ____________.
negative externality
In a limited liability partnership,
none of the partners have unlimited liability.
In a limited liability partnership, partners are responsible for _________________________
nothing beyond their investment
In the circular flow model, money flows ______________.
one way and products flow the other
If you decide to buy a $25 sweater rather than a $20 sweater, your marginal cost is ______________.
$5
Customers of the factor markets are _____________.
Businesses
Which statement about the reasons for gasoline's and elastic demand is true?
Gasoline has no closed substitutes
All of the following help explain the decline of unions in the late 20th century EXCEPT _________________.
SEIU's departure from the AFL-CIO
Which situations cause equilibrium price to rise?
The number of buyers increases. the number of sellers decreases.
A key victory of the CIO was unionizing the workers at ___________________.
Ford Motor Company
The percentage of U.S. business sales generated by sole proprietorships is ___________________.
5%
Which of these signals and incentives do shortages provide?
It is time for producers to leave the market
Legislation that has had a direct impact on wages is the ______________.
labor standards act
Private property rights are important in a market economy because they ______________.
are vital to any sale or exchange
The type of government most often associated with a command economy is a(n) _________________.
authoritarian regime
In a march to the home of President Theodore Roosevelt, labor activist Mary Harris Jones focused attention on the treatment of __________________.
child laborers
Organized labor in the United States helped to establish ____________
collective bargaining
One of the major disadvantages of corporations is _____________.
double taxation
An outward shift in a production possibilities curve could be caused by ______________.
efficiency
of the following nations, the country with a mixed economy that leans most toward socialism is ________________________.
france
Cocoa-nuts, a business that sells chocolates and a variety of nuts, has independently owned shops throughout the nation. Cocoa-nuts is a ______________________.
franchise
The word that best describes today's labor market is ____________.
global
The merger of two corporations that both provide telephone services is best described as a _____________________.
horizontal merger
As a factor of production, capital means
human-made resources used for business purposes
If the hourly wage for technical support representatives falls from $15 to $13, the demand for technical support representatives will ______________
increase
If the hourly wage for technical support representatives rises from $15 to $18, the supply of technical support representatives will _______________________.
increase
If the higher price in milk causes the supply of ice cream to decrease, the change in supply is due to _____________.
input costs
The term for the value of the next best alternative in an economic decision is _______________.
opportunity cost
A business experiences negative returns when the hiring of newer workers causes total _______________.
output to decrease
An illegal business practice designed to drive competitors out of business is _________________.
predatory pricing
Which term applies to the minimum wage?
price floor
As a country goes through a transition from a command to a market economy it is most likely to ________________.
privatize industries
The distinguishing characteristics of monopolistic competition are _________________.
product differentiation and non price competition
When the government grants a company a patent for a product or service it is _________________.
protecting the company's property rights
Government programs designed to protect people from economic hardships may be best described as a ___________.
public good
When the price of a good or service falls and consumers buy more of it, what is it that has changed?
quantity demanded
If the price of apples falls from $2 per pound to $1 per pound, the Jones family brings half as many pounds to sell as the farmers market. This example shows a change in ______________.
quantity supplied
The most common type of business organization in the United States is the __________________.
sole proprietorship
Sometimes consumers buy less of one product because they buy a similar product at a lower price. What pattern of behavior does this example reflect?
substitution effect
Producers are willing to sell more goods and services at higher prices than at lower prices. Which law does this statement reflect?
supply
Growth of the internet allowed mail order clothing companies to increase the amount of clothing they sold. This change in supply was due to ________
technology
In Marx's view, the factory owner's profit depends upon ______________.
the use of human labor as a commodity
Stockholders in a corporation are at risk of losing _____________.
the value of their investment
Which is a result of rent control?
there is a persistent shortage of housing
People are most likely to agree on economic goals and roles in a ______________.
traditional economy
A merger of a mining corporation and a company that manufactures mining equipment is called a ________________.
vertical merger
Scarcity is a problem because of the tension between limited resources and unlimited.
wants
The segment of the labor market that has grown the most since the mid- 1950's is ______________
women