Economics 1142 Self Test
type of business with two or more owners
partnership
extended periods that indicate the long-range direction of an economy
trends
computer network that transmits and updates price quotes
NASDAQ
short-term fluctuations of output around a long-term trend
business cycles
A firm's ... stock includes its plant and equipment and its inventory
capital
The unemployment rate provides a measure of , and indicates ... in, the economy
changes
The Taft-Hartly Act prohibited formation of ... shops and allowed states to pass right-to-work laws to ban ... shops
closed, union
... economic indicators indicate the current phase of the economy; ... economic indicators indicate what is likely to occur in 12 to 15 months
coincidental; leading
U.S. antitrust laws generally allow ... mergers because they do not significantly restrict competition
conglomerate
merger of firms in very different industries
conglomerate merger
The greatest advantage of a ... is its ability to raise capital
corporation
type of business in which many people invest labor and capital
corporation
type of unemployment that results from fluctuations in economic activity
cyclical
act of selling parts of a company recently acquired
deaquisition
economic situation in which unemployment exceeds 12 percent for more than one year
depression
Labor is a ... demand; that is, it is based on demand for a product or service
derived
production of goods and services
economic activity
type of unemployment that results from the freedom within a free-enterprise economy
frictional
A ... takeover is the purchase of a firm willing to be purchased; a ... takeover is the purchase of a firm opposed is being purchased
friendly, hostile
merger between firms in same industry
horizontal merger
... effect is how much a person is willing to change the number of hours he works when his wage increases or decreases
incentive
... must decrease during an economic downturn, but ... does not necessarily increase
income, unemployment
Unemployment is a greater problem in an ... economy
industrial
The most important ingredients necessary for economic growth are ...
institutional incentives, resources, investment, technological development
For a firm, the cost of a capital investment is the ... it must pay or that it loses on its funds
interest
group of employees who have organized to bargain collectively with their employers
labor union
... life and ... liability are disadvantages of sole proprietorships and partnerships
limited, unlimited
Most large corporations are controlled by paid ...
managers
... management makes operational decisions
middle
Desire to participate in ... activities may affect an individual's job decisions
nonmarket
Detrimental results of economic growth include...
pollution and rapid depletion of natural resources
issuing and selling of shares of stock by a company
primary distribution
The structure of a corporation is much like a ...
pyramid
economics downturn of more than two quarters
recession
gauges of the health of an entire economy
representative indicators
type of unemployment that results from economic changes during a temporary period
seasonal
subsequent trading of existing shares of stock
secondary market transaction
certificate of ownership in a corporation
share of stock
When unemployment ... the target rate, demand exceeds supply and inflation accelerates; but when unemployment ... the target rate, the supply exceeds demand and a recession occurs
sinks below, rises above
type of business owned and managed by a single individual
sole propietorship
Of the three types of business organizations, ... are the most common, ... are the least common, and ... generate the most revenue
sole proprietorship, partnership, corportation
association of security brokers and dealers who transact business together
stock exchange
type of unemployment that results from changes in the economy itself
structural
In a ..., one firm is purchased by another, which takes direct control of the purchased firm; in a ..., a smaller firm is purchased by a larger one, which may not take direct control of its operation
takeover, acquisition
The ... rate of unemployment is the lowest sustainable rate that economists believe is possible under existing conditions
target
Keynesian economists believe ..., and classical economists believe...
that government intervention should control economic fluctuations, that society should provide everyone with a job, that structural and cyclical unemployment are more common; that fluctuations are a natural part of a market economy, that every individual is responsible for his own employment, that almost all unemployment is frictional
... management, which includes the board of directors and top executives, makes decisions that can affect or alter the course of the firm
top
percentage of people in the labor force who want to work but cannot find a job
unemployment rate
In a ... shop, employees must join the union after a certain period of time; in a ... shop, union membership is necessary for employment
union, closed
merger between one firm and another that is ahead of or behind it in the production process
vertical merger
