Economics review

If a company's marginal revenue is always $6.00, what does the marginal cost have to be for the company to earn the maximum amount of profit?

$6.00.

A couple constructs a decision matrix to select which charity will receive a $500 donation. Since "helping children" is the most important criteria to the couple, which of the following weights should it be assigned?

.60

Mary is a bagger at Glen's Market. On a weekly average, she works 30 hours and fills 876 bags of groceries. Her productivity is __________ bags of groceries per hour.

29.2.

Which of the following is an example of a "leakage" in the circular flow of income model:

A business retaining earnings to pay off debt.

Which of the following statements regarding federations is true:

A union federation consists of several national unions of different kinds.

Which of the following actions would a country's central bank take to expand monetary policy:

Buy securities on the open market

An accurate statement concerning labor specialization would be that it

Can be of different types.

How do spending levels impact the economy in an inflationary period?

Consumers and businesses spend less.

Quinn always asks questions and learns as much as she can at work. As a result, she often has innovative ideas. Quinn demonstrates

Curiosity.

A U.S. company begins selling its products in France. Despite brisk sales, the company doesn't make enough profit to cover its expenses. When setting prices, the company simply used the same prices in both countries. For example, $5.99 = 5.99 French francs; $2.89 = 2.89 French francs. What risk of international business did the company not consider?

Currency fluctuations.

"Too much cash chasing too few goods" is a description of

Demand-pull inflation.

A bakery hires more employees and, at first, the number of baked goods it produces rises quite quickly. However, as more and more employees are hired, it starts to slow down. This is an example of the law of __________ returns.

Diminishing.

In some states, it is against the law to sell alcohol on Sundays. This law was created to honor the Christian religious belief that Sunday is a special day of rest. This is an example of culture impacting the __________ of goods.

Distribution

Interest rates rising and falling by a wide range on a regular basis often are an indication of

Economic instability

A government's fiscal policies that are intended to encourage economic growth are known as __________ policies.

Expansionary.

The U.S. government is offering a decrease in taxes to citizens who install solar panels on their homes. Using economic terms, how would you describe this incentive?

Financial and positive

Which of the following might cause supply of a good to decrease:

Government regulations

Which of the following would provide you with information about the health of the U.S. economy:

Gross domestic product.

Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is

Ice cream at Dairy Queen.

Which of the following actions would a government take to increase economic growth:

Increase government spending.

According to the law of diminishing returns, what will happen to the output of a taco truck if it continues to hire employees?

Increases in output will eventually decline.

In calculating GDP, economists try to avoid double counting because it would

Inflate the value of GDP.

Which of the following is a true statement regarding inflation's effects on the economy:

Inflation does not affect everyone equally.

The U.S. government aims to keep inflation at 2%. This is called

Inflation targeting

Jerry bought a new bicycle with special tires. In economic terms, the tires on this bike are considered

Intermediate products

Which of the following is an advantage of strong currency:

It boosts consumer confidence.

To be able to charge competitive prices in our economy, producers must combine resources and technologies to produce

Items at the lowest cost possible.

A worker who sorts all of a business's mail every day is performing a task that has

Low depth and low scope.

Jeremy has $15,000 to spend on a new car. He found a car that cost $14,500, but he did not think the car was worth more than $12,000. The dealer told Jeremy that he has not been able to sell this model because other customers have expressed the same opinion as Jeremy. Does demand for this car exist?

No, because consumers are not willing to pay the price being asked for this car.

The formula that is generally used to measure productivity is

Outputs divided by inputs.

What is the amount of money for which an item sells in the competitive marketplace?

Price

Actors and athletes belong to what types of unions?

Professional unions

One of the main functions of a country's monetary policy is to Correct! regulate the economy.

Regulate the economy.

What usually results when interest rates continue to increase?

Spending decreases.

Gross domestic product per capita is a measure of

The average worker's productivity.

Which of the following is a benefit of low, controlled inflation:

The government's ability to adjust interest rates.

Which of the following is an example of technological unemployment:

The invention of digital photography leads to fewer jobs developing film

What is the effect on society of a falling growth rate in productivity?

The standard of living drops.

Which of the following is a true statement about sales taxes:

They are levied by state and local governments.

Which of the following is the best reason for studying economics:

To prepare for effective decision making and responsible citizenship

"Big Q" is also known as

Total quality management.

In one day of selling pizzas, a pizza parlor takes in $1,500. This is the pizza parlor's

Total revenue.

Bricklayers, science teachers, dentists, and truck drivers are examples of specialization of labor by

Trade or profession

Forwards and options are types of

Trading instruments

A non-pressure strategy that unions and management can use to reach agreement is

arbitration.

When tax revenue is not enough to cover government expenditures, the government must

borrow funds

Ups and downs in the level of economic activity over a period of time are called a(n)

business cycle

When supply is greater than demand, a __________ often develops.

buyers market

What is one factor that will determine how much a customer is willing to pay for a good or service?

buying power

The use of robots in assembly-line work is a form of specialization involving

capital goods

Sharing business goals and objectives with workers is a method of increasing productivity through

communication

Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision?

concert ticket

Which of the following is a factor affecting a product's utility to the individual customer:

consumers age

The ultimate goal of all economic activity is

consumption

A 12-screen movie theater recently opened in your neighborhood. Just a couple of months after it opened for business, the old single-screen drive-in movie theater nearby went out of business. This is an example of

creative destruction

What is often the result when businesses are able to achieve and maintain a quality culture?

customer satisfaction

A group of entrepreneurs is trying to decide which of five new product ideas to select. Which tool can be used to help make the decision?

decision matrix

Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. This is an example of

demand

Most businesses strive to supply goods and services in direct proportion to

demand

One way that the productivity of a business can be measured is by

dividing the dollar value of total sales by the costs of making those sales.

Seeing a movie at a theatre would be considered a(n) __________ want.

economic

When less expensive substitutes for a product are readily available, then demand for that product is likely to be more urgent.

elastic

What exists when producers produce more than buyers are willing and able to buy?

excess supply

Pegged currency is also known as __________ currency.

fixed

Which of the following quality-control tools is used to analyze a sequence of events and find relationships within it:

flow chart

Which of the following is another name for a bar graph:

histogram

According to the Keynesian theory of unemployment, the best solution for unemployment is to

increase demand

What do consumers, producers, and resource owners need to have in order to make economic decisions?

information about prices

If a company develops a new product, method, strategy, or process, it is known as a(n)

innovation

The unemployment rate is a(n) __________ indicator.

lagging

The young children's section of a U.S. amusement park features cartoon characters from a German TV show. Although the amusement park signed an agreement and paid a fee to display images of the cartoon characters, the TV show doesn't own or manage the park in any way. This is an example of

licensing

When union members of Local 654 arrived at work today, they found a sign on the door stating that the business had closed temporarily, and the employees were not allowed to work. This is a pressure strategy known as a(n)

lockout

What do producers often do when supply is greater than demand?

lower prices

Which of the following is usually the first effect that unemployment has on an individual or family:

lowered standard living

A manager, whose workers perform specialized job tasks, decides to offer employees cash bonuses for suggesting ways to improve the work environment. Offering bonuses is one way to increase employee

motivation

Ski instructors in Colorado are examples of workers whose jobs involve specialization by

natural resources

Which of the following occurs as a result of discoveries and innovation:

new jobs are created

John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?

new pair of jeans

Friendship would be considered a(n) __________ want.

noneconomic

Which of the following describes inelastic demand:

not affect by price change

Tia always considers her employees' suggestions, even if their ideas are new or unusual. Tia demonstrates

open-mindness

Which of the following is a tax on employment:

payroll tax

During which phase of the business cycle would there most likely be shortages of workers in certain skill areas?

peak

The top of a business cycle is known as the

peak

A country's standard of living can be calculated by dividing the goods and services its people have by

population

In the exchange rate quotation GBP / JPY = 171.93, JPY is the __________ currency.

quote

Which of the following would policy makers monitor to understand personal consumption expenditures (PCEs):

retail sales

As a management trainee in a large business, Ron spends three weeks working in each of the various departments. This is an example of job

rotation

A gap between unlimited wants and limited resources creates

sacristy

Consumers are typically most willing to pay more for goods and services that bring them greater

satisfaction

A company produces only one type of shoe, since this is the product it is best able to produce with its resources. This is an example of

specialization

"Little Q" is a __________ way of thinking.

tactical

One reason why the supply of certain products has been eliminated is because of

technology

George agreed to paint Joe's car for him and asked to be paid in cash so that there would be no record of the transaction. The money George earned is part of

the underground economy

Which of the following is true of employees whose jobs have high depth:

they set their own pace

Why do most businesses use some type of quality control method at work?

to minimize errors

How much a consumer is willing to pay for a product depends partly on the consumer's opinion of the product's

value

A factory that mass produces clothing increases productivity because it reduces

wasted resources

An automobile assembly line currently has 75 cars being assembled. These partially-complete cars are considered

work in process