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