Economics: UNIT: MACROECONOMICS: POLICY AND ITS EFFECTS
Many classical economists such as Adam Smith believed that government should intervene often in the economy. intervene little in the economy. always intervene in the economy. totally control the economy.
✔ intervene little in the economy.
What is the definition of collective bargaining? ongoing salary negotiations between an employee and a factory owner an agreement among a group of factory owners to raise worker wages a written set of guidelines about legal and illegal workplace conditions labor union and employer negotiations about wages and other issues
✔ labor union and employer negotiations about wages and other issues
Milton Friedman argued that consumers are more likely to alter their behavior based on changes in the unemployment rate. short-term changes in the economy. long-term changes in the economy. changes in the inflation rate.
✔ long-term changes in the economy.
Milton Friedman led a new economic school of thought called laissez faire. monetarism. price signaling. the invisible hand.
✔ monetarism.
To be successful, what must an entrepreneur be willing to invest? Check all that apply. money unemployment personal safety time considerable effort
✔ money, time, and considerable effort
Which workers are most likely to be in demand in the future? those with high-tech skills those with construction skills those in government jobs those in manufacturing jobs
✔ those with high-tech skills
What is one purpose of writing a business plan before entering the market? to prove that the new company will be successful to show that the enterprise is realistically based to have a useful tool when applying for funding to differentiate the new company from the competition
✔ to differentiate the new company from the competition
The author of the article, Arthur Brooks, has been president of the American Enterprise Institute since 2009, an organization committed to protecting free enterprise in the United States. He is the author of several books, including "The Road to Freedom: How to Win the Fight for Free Enterprise." How does this information about the author influence your opinion about the reliability of this source? Discuss at least one other type of source or document that would help you analyze the benefits and drawbacks of free enterprise.
Brooks is the president of an organization founded to protect the American free enterprise system. As a result, he is likely biased toward free enterprise and will be more likely to argue in its favor without considering its drawbacks. Another source that would be helpful would be an article that describes the negative economic and social characteristics of free enterprise.
This graph compares the total cost of attending educational institutions in Texas. The graph demonstrates that the cost at private and public technical schools greatly varies. vocational schools greatly varies. four-year universities greatly varies. community colleges greatly varies.
✔ four-year universities greatly varies.
Think about the videos you have watched. Why is there a need for government regulation, and what limits need to be placed on these regulations? Give your answer in the form of a short paragraph.
Government regulations are necessary because they protect public safety and market fairness. For example, food safety regulations help protect consumers from pathogens that could cause widespread illness. By creating regulations, the government can make food-borne illness less likely. However, even though these regulations are necessary, they must still meet constitutional requirements. Producers and consumers have the right to own and use property, among other constitutional rights.
You just watched a video in which President Obama announces his plan for financial regulatory reform. According to President Obama, what are the reasons for the financial crisis?
President Obama indicates that there are several reasons for the financial crisis. According to the president, one reason is irresponsible practices by financial institutions. The amount of risk involved in newly created investments was high, and few investors or consumers understood this. These types of investments were made possible due to a lack of regulation within the system.
Besides the cost of an education, what additional expenses must students pay? Check all that apply. housing meals supplies textbooks tuition
✔ housing, ✔ meals, ✔ supplies, and ✔ textbooks
Write about the scholarship you selected. What are the qualifications to apply for it? How is it awarded? Give your response in at least three sentences.
Sample response: I qualified for the Horatio Alger Scholarship. It is awarded based on financial need, but students must have a 2.0 GPA to apply. To qualify, students must pursue a degree at a four-year college.
Based on the lesson and your research, how would you fund a four-year college degree? In two to three sentences, explain your choices.
Sample response: I would apply for several scholarships and grants so that I could avoid getting too many loans. Working a part-time job in a work-study program will help me save some money toward my expenses. I could also take out a limited number of loans to responsibly cover the rest of my expenses.
Now, open this passage to read about FAFSA requirements. Describe the information you will need to provide in order to complete a FAFSA. List at least three of the required documents you must include.
Sample response: To complete a FAFSA, I must first include information to verify my identity. This includes my Social Security number or a driver's license. I must include information about my income or my family's income (if they are still responsible for my care). Finally, I must submit financial information, like my account statements.
Based on what you read, list at least three reasons why work-study programs could be a helpful way to help finance an education.
Sample response: Work-study programs can help students to create a flexible schedule. Schools can help to arrange these schedules so that a student's best interests are kept in mind. Finally, work-study can be an opportunity for students to gain experience in the workplace. This will prepare them for their future career.
Articles of partnership establish how businesses can raise capital. what business taxes are paid. how profits and losses are divided. what is included in a charter.
✔ how profits and losses are divided.
According to the video, how was the Banking Act of 1933 a reaction to the Great Depression?
The Banking Act of 1933 was a reaction to the Great Depression because it worked to protect deposits from risky investments by banks. These investments caused many citizens to lose their money during the Great Depression. Protections occurred through the creation of regulations and new agencies to oversee financial institutions.
Based on the video, which economic theories were most clearly applied by the Federal Reserve in response to the economic crisis? Describe the connections between the Fed's actions and the theories of Smith, Keynes, Hayek, or Friedman.
The Federal Reserve pursued policies that most closely followed the theories of Keynes and Friedman. Both economists argued that aggregate demand could be influenced through policies. They believed that this could help the economy recover or grow. The Fed seemed to follow Keynes's theories by taking action to intervene. It also seemed to follow Friedman's thinking by focusing on increasing the money supply through monetary policy.
According to the video, did the Federal Reserve pursue an expansionary or a contractionary monetary policy? Give at least two examples of actions that support your answer.
The Federal Reserve took an expansionary approach during the crisis. This was done by expanding the money supply and boosting liquidity. This can be seen in the Fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. The Fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.
In a paragraph, make a claim about the advantages of entrepreneurship and free enterprise. Be sure to support your claim with reasons and evidence. Also, address at least one counterclaim in your answer.
The ability of entrepreneurs to exist and thrive is the largest advantage of free enterprise. While some might say that entrepreneurship can create unemployment, entrepreneurs and free enterprise actually provide benefits. These positive outcomes include creating income, reducing unemployment, and providing funding for the government through taxes.
Which statement best explains a grant? A grant is money awarded to a student, usually based on financial need. A grant is aid given to a student by an institution, often based on academic success. A grant is money borrowed by a student to pay for an education that will need to be repaid. A grant is the price of attending classes at a school.
✔ A grant is money awarded to a student, usually based on financial need.
Valentino and Eva are siblings who have inherited a large sum of money. They hope to use their inheritance to start a restaurant together. Both Valentino and Eva have worked in restaurants their entire lives, and both have strong business backgrounds, but they are concerned about the strong competition in their community. Use what you have learned about business organizations to advise Valentino and Eva. Which type of business organization should they consider when setting up their new restaurant? Include at least two reasons for your advice.
Valentino and Eva have a large amount of capital to get started, so they should consider purchasing a franchise. Investing in a well-known restaurant brand will help them be successful in their competitive market. In addition, they should establish a partnership. This will ensure that they will have an equal say in how the business will operate, and they can also share the risks and profits equally.
Petra owns a coffee shop. She has ten employees.In 2007, she paid her employees minimum wage ($5.85 an hour).In 2008, the minimum wage increased to $6.55 an hour.In 2009, the minimum wage increased to $7.25 an hour. Petra is paying her ten employees for 40 hours a week, 52 weeks each year. In 2007, Petra spent __________ on wages for her employees each week. When the minimum wage rose in 2009, Petra had to increase her annual budget for wages from 2008 by __________.
✔ $2,340 and ✔ $14,560
Use the drop-down menus to complete the sentences. According to the article, Americans make up about _______ of the world's population, but about _______ of the world's "top 1%." This means that a majority of Americans are in the _________________ of all earners in the world, which is defined as those earning more than $34,000 a year. The author states that this wealth is due to America's commitment to ____________________________________.
✔ 5%, ✔ 50%, ✔ top 1%, and ✔ free enterprise
In which situation would government regulation most likely be necessary? A factory requires employees to work in unsafe conditions. A restaurant requires employees to work overtime on weekends. A computer company requires employees to work long hours. A power plant requires employees to take safety training classes.
✔ A factory requires employees to work in unsafe conditions.
What must an entrepreneur do after creating a business plan? open the business finance the business file the right paperwork identify an opportunity
✔ finance the business
The graph shows labor union membership. During what years did union membership peak? in 1945 and 1955 in 1960 and 1970 in 1930 and 1950 in 1965 and 1970
✔ in 1945 and 1955
Two doctors who join forces in business form a _____________________.
partnership
How is a federal loan different from a private loan for an education? A federal loan is available for any student who meets the government's lending standards. A private loan is only available for students who show a need. A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank's lending standards. A federal loan can only be used to pay for a student's tuition. A private loan can be used to pay for a student's tuition and any other expenses. A federal loan can be used to pay for a student's tuition and any other expenses. A private loan can only be used to pay for a student's tuition.
✔ A federal loan is only available for students who show a need. A private loan is available for any student who meets the bank's lending standards.
What is one difference between a vocational school and on-the-job training? A vocational school degree takes one year to earn. On-the-job training takes two or more years. A vocational school degree takes weeks or months to earn. On-the-job training takes two years or fewer. A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer. A vocational school is usually paid for by the employer. On-the-job training is usually paid for by the worker.
✔ A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer.
Who was known as the "Father of Economics," whose ideas of free markets inspired classical economic thinkers? John Keynes Milton Friedman Friedrich Hayek Adam Smith
✔ Adam Smith
What is the most significant challenge Annabeth faces in her business model? Annabeth does not have the skills to make machine parts. Annabeth must raise large amounts of capital to get started. There is no demand for solar panel parts in her community. There is no demand for solar panel parts overseas.
✔ Annabeth must raise large amounts of capital to get started.
What evidence does the author use to argue against the claim that "free markets are driven by greed"? Money is not important to entrepreneurs. Business owners are driven by personal success, not profits. Most entrepreneurs must take out second mortgages on their homes. Most small-business owners are unhappy in their lives.
✔ Business owners are driven by personal success, not profits.
Which best describes the difference between preferred and common stocks? Preferred stock allows shareholders to vote for a board of directors, while shareholders of common stock do not have voting rights. Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights. Preferred stock gives shareholders priority for dividends distributed, while shareholders of common stock are not allowed dividends. Common stock allows shareholders to get priority for dividends distributed, while shareholders of preferred stock are not allowed dividends.
✔ Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.
To reduce pollution, the _______________________________________________________ legislates and enforces regulations that protect the air, water, and land.
✔ Environmental Protection Agency
Use the drop-down menus to complete each sentence. A notable action taken by the Fed during the financial crisis of 2008 was carrying out open market operations, which was intended to lower the ________________________________. The actions taken by the Fed _________ have immediate positive results, despite the fact that the Federal Funds Rate reached nearly _______.
✔ Federal Funds Rate, ✔ did not, and ✔ 0%
Read the graph. What can the reader reasonably conclude from information in the graph? Fewer new businesses were started in 2010 than in other years. The opening of new businesses peaked between 2007 and 2008. More new businesses were started in 2006 than in 2005. The number of new businesses remained constant between 2006 and 2009.
✔ Fewer new businesses were started in 2010 than in other years.
Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy? Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy. Friedman said that fiscal policy should be used to influence aggregate demand, while Keynes believed the best approach was monetary policy. Keynes believed in little government intervention in the economy, while Friedman said government should play an active role. Keynes believed the economy was too complicated to think of aggregates, while Friedman said higher aggregate demand could solve issues.
✔ Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.
Estimated Employment Change by Sector 2004-2020 How was the high-tech sector affected during the recession of 2007? High-tech employees were more likely to be unemployed. Employment in the high-tech sector exceeded 2004 levels. High-tech and private employment was about the same. High-tech sector employees were less likely to lose their jobs.
✔ High-tech sector employees were less likely to lose their jobs.
Which statement describes an hourly wage job? Each paycheck is the exact same regardless of number of hours worked. Each paycheck is less, even if an employer wants you to work more hours in a week. If an employer wants the employee to work more hours in a week, the result is a larger paycheck. If the business is closed for a holiday, the employee still gets paid regardless of available vacation hours.
✔ If an employer wants the employee to work more hours in a week, the result is a larger paycheck.
The graph shows an early economic theory known as the "invisible hand." Which best describes the idea behind the "invisible hand"? Producers decide what to make for consumers, which guides the economy. Individuals seeking their own self interest benefit the economy as a whole. Government sets policy for producers and consumers, which guides the economy. Consumers decide what they need and want to buy, which guides the economy.
✔ Individuals seeking their own self interest benefit the economy as a whole.
Which economist most likely would have agreed with the US government's intervention during an economic crisis in 2008? Friedrich von Hayek Adam Smith John Maynard Keynes Milton Friedman
✔ John Maynard Keynes
Juanita wants to grow her business. Which options does she have? Select all that apply. Juanita could incorporate and try to find investors to help her grow her business. Juanita could remain a sole proprietor and begin a web-based magazine. Juanita could take on a partner, become a partnership, and begin hiring other staff members to take on more translating work. Juanita could buy an existing franchise and change its product to fit her translation skills. Juanita could remain a sole proprietor and incorporate her company.
✔ Juanita could incorporate and try to find investors to help her grow her business., ✔ Juanita could remain a sole proprietor and begin a web-based magazine., and ✔ Juanita could take on a partner, become a partnership, and begin hiring other staff members to take on more translating work.
A government might enact expansionary spending when it is trying to increase aggregate demand for goods. decrease aggregate demand for goods. slow an economic expansion. lower a budget deficit.
✔ increase aggregate demand for goods.
Which best summarizes the philosophical difference between economists John Maynard Keynes and Adam Smith? Keynes said government was the key to solving economic issues, while Smith believed government should take a hands-off approach. Smith said government was the key to solving economic issues, while Keynes believed government should take a hands-off approach. Smith believed in an "invisible hand" with which government pushes the economy, while Keynes did not agree with this idea. Keynes believed in an "invisible hand" with which consumers push the economy, while Smith did not agree with this idea.
✔ Keynes said government was the key to solving economic issues, while Smith believed government should take a hands-off approach.
The labor unions are group efforts in the direction of democracy. Like the political efforts in the same direction, they become many times stultified and lead up blind alleys. But the effort creates power. While the economic gains are themselves important and are measures of strength, the significance of the labor union is its assertion of the manhood of labor. Background information: Helen Marot was an author and a labor advocate. The word stultified means losing energy. What does the author imply about the influence of unions? Check all that apply. Unions weaken worker efforts. Labor unions can help workers to achieve gains. Unions can sometimes lead to negative results. Labor unions provide no benefits for workers. Unions can promote democracy.
✔ Labor unions can help workers to achieve gains. and ✔ Unions can promote democracy.
Why was the Food Safety Modernization Act passed? Check all that apply. Many citizens are in danger of contracting a food-borne illness. More people are living with chronic illnesses. Our food is no longer imported from foreign countries. Pathogens are becoming stronger and harder to defeat. Food-borne illnesses are not seen as a health threat.
✔ Many citizens are in danger of contracting a food-borne illness., ✔ More people are living with chronic illnesses., and ✔ Pathogens are becoming stronger and harder to defeat.
What makes enforcing safety standards a challenge for the Food and Drug Administration? Many foods are imported from other countries, and the FDA must ensure those foods meet the same standards as US goods. The FDA faces competition from the EPA, which sets standards for product labeling. The FDA has no control over advertising laws, which may conflict with safety standard laws. Many raw materials are exported to other countries, and the FDA must ensure those materials meet the same standards as international goods.
✔ Many foods are imported from other countries, and the FDA must ensure those foods meet the same standards as US goods.
What was the status of US workplace safety laws in 1900? A few states had tried to pass safety laws, but they had no public support. Most states had passed some safety laws, but enforcement varied. Most states opposed safety laws, but workers began to demand them. All states had safety laws, but no one bothered to enforce them.
✔ Most states had passed some safety laws, but enforcement varied.
A regulatory agency that protects workers is OSHA. EPA. FDA. SEC.
✔ OSHA.
What was the main effect of entrepreneurship in China? Poverty noticeably declined. Foreign investment declined. New products were invented. Product exports exceeded imports.
✔ Poverty noticeably declined.
The graph shows Keynes's theory of aggregate demand. What is likely to happen if a new aggregate demand curve moves to the right? Prices and output would drop, and the equilibrium point will stay the same. Prices would rise, and output would drop in the short run. Prices and output would rise, and the equilibrium point will change. Prices would rise, and output would drop in the long run.
✔ Prices and output would rise, and the equilibrium point will change.
Which is the best description of how a scholarship differs from a federal education grant? Federal grants are awards that don't have to be repaid, but students must pay back any scholarships they receive. Federal grants can be awarded for various reasons, but scholarships are always based on a student's financial need. Scholarships are awards that do not have to be repaid, but students must pay back any federal grants they receive. Scholarships can be awarded for various reasons, but federal grants are usually based on a student's financial need.
✔ Scholarships can be awarded for various reasons, but federal grants are usually based on a student's financial need.
Use the drop-down menus to complete each sentence. ________________ was an economist who led a new school of classical economics. The concept of laissez faire refers to ________________ government intervention in the economy. The theory that governments should assist in economic crises through fiscal and monetary policy can be credited to ________________.
✔ Smith, ✔ little, and ✔ Keynes
Which can be considered disadvantages of sole proprietorships and partnerships? Partnerships require many people to write a charter, while sole proprietorships require one person to write a charter. Sole proprietorships require one person to know complicated tax laws, while partnerships require many people to know the rules. Partnerships require one person to do many things, while sole proprietorships require many people to weigh in on decisions. Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.
✔ Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.
Identify the actions taken by the Fed to assist banks during the financial crisis of 2008. Check all that apply. The Fed implemented new fiscal policy measures to encourage consumer spending. The Fed placed a cap on the cash that individuals could receive from banks at one time. The Fed bought securities to increase the money supply. The Fed lowered interest rates, hoping to increase available credit. The Fed carried out open market operations to stimulate growth.
✔ The Fed bought securities to increase the money supply., ✔ The Fed lowered interest rates, hoping to increase available credit., and ✔ The Fed carried out open market operations to stimulate growth.
What is the job outlook for a US postal worker? The career is growing and will provide more opportunities over time. The career is growing and will provide fewer opportunities over time. The career is shrinking and will provide more opportunities over time. The career is shrinking and will provide fewer opportunities over time.
✔ The career is shrinking and will provide fewer opportunities over time.
John Maynard Keynes believed that governments should increase spending in order to increase prices. increase supply. decrease demand. increase demand.
✔ increase demand.
Scenario:Mark and Emiko are both dairy farmers. They would like to work with other dairy farmers in their area to buy feed, fuel, and other supplies at reduced prices. They also think that they can get a better price for their milk if they market their products under the same brand. Why is a cooperative a good choice for Mark, Emiko, and the other farmers in their area? The farmer with the largest farm will make the decisions for the group. No one will have to pay taxes on their earnings. The farmers can all be member-owners and share in any profits. The cooperative does not have to be registered with the state.
✔ The farmers can all be member-owners and share in any profits.
According to the Fed, what were the major problems during the financial crisis of 2008? Check all that apply. The money supply became less liquid. Consumer spending increased dramatically. Lending and credit stopped. Banks were too easily able to fulfill consumer demands for loans. It was difficult for banks to receive the loans needed to have cash required to function.
✔ The money supply became less liquid., ✔ Lending and credit stopped., and ✔ It was difficult for banks to receive the loans needed to have cash required to function.
What is one benefit of privately issued student loans? They are issued in cooperation with the student's university to reduce costs and paperwork. They have lower interest rates and can be paid back with lower out-of-pocket costs. They are backed by the US government to ensure greater financial security. They are available to any student who meets lending standards, regardless of financial need.
✔ They are available to any student who meets lending standards, regardless of financial need.
Read the excerpt from a letter about the early trade union movement. The trade union movement came into being as a movement of hunger. It was made necessary by conditions. It was in the beginning formed in response to a hunger for enough to eat . . . As it became possible to secure more food, other hungers demanded satisfaction . . . The demands were for more and better food, for better clothes and for better homes. It required a struggle to satisfy these needs . . . [A]t every step of the way it was necessary to overcome the stubborn opposition of employers who were resolved not to recede and not to relinquish any of the powers and privileges which they possessed. —Samuel Gompers, 1920 What does the author believe about factory owners? They struggle just as workers do. They earned their privileges. They are greedy and selfish. They are stubborn but hardworking.
✔ They are greedy and selfish.
What happens to earnings in a cooperative? They are used to pay middlemen for services. They are shared with member owners. They are used to buy more stock for members. They are shared with customers through dividends.
✔ They are shared with member owners.
How do corporations raise money and resources to expand? Select THREE answers. They request a bank loan. They raise franchise fees. They cash in dividends. They agree to sell stocks. They issue bonds.
✔ They request a bank loan., ✔ They agree to sell stocks., and ✔ They issue bonds.
Which statement best defines tuition? Tuition is federal money awarded to a student. Tuition is aid given to a student by an institution. Tuition is money borrowed to pay for an education. Tuition is the price of attending classes at a school.
✔ Tuition is the price of attending classes at a school.
Labor Union Membership in the US 1897-1934 Which of these statements is supported by the information in the graph? Union membership increased more than five times between 1900 and 1920. Union membership declined after 1915, before rising again after 1920. Union membership was higher in 1905 than it was in 1910. Union membership reached its peak around 1930.
✔ Union membership increased more than five times between 1900 and 1920.
We want more school houses and less jails; more books and less arsenals; more learning and less vice; more constant work and less crime; more leisure and less greed; more justice and less revenge; in fact, more of the opportunities to cultivate our better natures, to make manhood more noble, womanhood more beautiful and childhood more happy and bright. These in brief are the primary demands made by the Trade Unions in the name of labor. These are the demands made by labor upon modern society and in their consideration is involved the fate of civilization. Background information: Samuel Gompers was an important labor leader in the 1800s. Which statement best reflects the main idea of the excerpt? Modern society is too concerned with the fate of civilization. Unions are working toward helping workers attain a better life. The only way workers can achieve higher wages is through the labor movement. Economic growth is the key to improving people's standard of living.
✔ Unions are working toward helping workers attain a better life.
Our labor unions are not narrow, self-seeking groups. They have raised wages, shortened hours, and provided supplemental benefits. With which of these statements would Kennedy most likely agree? Unions benefit those who belong to them. Unions do not benefit nonunion workers. Union activity increases business profits. Unions do not ultimately benefit workers or businesses.
✔ Unions benefit those who belong to them.
To remember the loneliness, the fear and the insecurity of men who once had to walk alone in huge factories, beside huge machines-to realize that labor unions have meant new dignity and pride to millions of our countrymen-human companionship on the job, and music in the home-to be able to see what larger pay checks mean, not to a man as an employee, but as a husband and as a father-to know these things is to understand what American labor means. What does Adlai Stevenson imply about the influence of unions? Check all that apply. Labor unions are a necessary evil. Workers take pride in supporting their families. Adequate pay gives workers dignity. Workers are always free to start their own businesses. Unionized labor is about more than money and workplace conditions.
✔ Workers take pride in supporting their families, Adequate pay gives workers dignity., and Unionized labor is about more than money and workplace conditions.
__________________________________________ laws ensure that workers are paid if they are injured on the job.
✔ Workers' compensation
In order to receive financial aid at his vocational school, Mario must fill out the FAFSA. The FAFSA is a form that must be completed to determine _________________________________________. In order to complete a FAFSA, you must submit _________________________________________. The FAFSA can help students obtain _______________________________.
✔ financial aid eligibility, ✔ financial information, and ✔ scholarships and grants
Scenario: Annabeth is a mechanical engineer who specializes in making machine parts. She wants to buy a factory and begin making machine parts for solar panels, a growing business sector in her community. Eventually, she plans to export her products to Europe and South America, where solar panel manufacturing has increased in recent years. What is the best business organization for Annabeth's new company? a corporation, because she will need financing to get started a sole proprietorship, because the business is small and simple to operate a partnership, because she lacks the skills to make machine parts a cooperative, because local businesses will be her customers
✔ a corporation, because she will need financing to get started
What event had an enormous effect on US workplace safety? a new minimum wage the first labor union a worker strike a deadly factory fire
✔ a deadly factory fire
According to the video, which food safety regulations have been created by the passage of the Food Safety Modernization Act? Check all that apply. a provision of money for facilities to improve hygiene and prevent hazards a requirement for farmers to prevent hazards when growing or harvesting foods a requirement for facilities that produce food to monitor cooking temperatures to prevent hazards a rule that food needs to be monitored only after it has entered the United States a set of rules for importers to make sure that food is inspected before it is shipped
✔ a requirement for farmers to prevent hazards when growing or harvesting foods, ✔ a requirement for facilities that produce food to monitor cooking temperatures to prevent hazards, and ✔ a set of rules for importers to make sure that food is inspected before it is shipped
Scenario: Juanita is a bilingual writer. She wants to start a business to offer translation services to other businesses that work in areas with a large Spanish-speaking population. She already has a computer and a good reputation in her own Spanish-speaking neighborhood, and she plans to work from home by herself. Which type of business is best for Juanita to start? a corporation, because she needs a large investment to get started a sole proprietorship, because she will work alone from home a franchise, because many others will want to start the same business a cooperative, so that she and other translators can work together
✔ a sole proprietorship, because she will work alone from home
Scenario: Mario wants a job working with cars. He knows a lot about certain kinds of cars, and enjoyed his high school class on car mechanics. When he graduates from high school, he needs to decide what kind of education is the right choice so that he can work on many different types of vehicles. Which education choice would be the right one to get Mario started in his career working with cars? a four-year-college liberal arts degree a two-year vocational school program in welding a two-year vocational school program in automotive repair on-the-job training on oil changes
✔ a two-year vocational school program in automotive repair
Use the drop-down menus to complete each sentence. According to the theories of Friedrich August von Hayek, the economy may be too complicated to think in terms of ________________________________. Hayek believed that ________________________________ was dangerous and could lead to severe inflation. Milton Friedman supported changes to policy to influence economic growth.
✔ aggregates, ✔ expansionary policy, and ✔ monetary
The EPA tries to balance protecting business interests with protecting food. air. consumer products. medical devices.
✔ air.
An entrepreneur conducted many experiments in a project without success. What characteristic must this person have to succeed? a dedication to hard work a willingness to admit failure an ability to learn from mistakes an assumption of responsibility
✔ an ability to learn from mistakes
A disadvantage of forming a partnership is that owners can find it tougher to start and stop a business. can find it more difficult to get a bank loan. are only responsible for their own finances. are fully responsible for their partners' losses.
✔ are fully responsible for their partners' losses.
What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries? shifting consumer tastes overseas labor costs changing technologies aging populations
✔ changing technologies
Which are results of regulation in a mixed-market economy? Check all that apply. compliance with laws advantages for producers control of markets advantages for government control of externalities
✔ compliance with laws and control of externalities
A business owner would most likely create a cooperative instead of buying a franchise because cooperatives give majority owners the most control, while franchises make decisions with a parent company. cooperatives make it easy to accumulate supplies, while franchises come with supplier relationships already in place. cooperatives are well financed by members, while franchises must raise large sums of money to launch a business. cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company.
✔ cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company.
Franchising is typically done by cooperatives. partnerships. LLC corporations.
✔ corporations.
A new business should be based on an entrepreneur's individual interests because the entrepreneur must have sufficient confidence to succeed. be willing to take personal responsibility. have enough determination to work alone. dedicate as many hours as needed to the work.
✔ dedicate as many hours as needed to the work.
Government regulation is intended to encourage producers to take negative actions. discourage producers from taking harmful actions. encourage producers to follow the Constitution. discourage producers from making a profit.
✔ discourage producers from taking harmful actions.
Which is a function of regulatory agencies? encouraging business compliance creating legislation for businesses encouraging negative externalities creating new business opportunities
✔ encouraging business compliance
Which occurred during the Great Depression? Check all that apply. increased aggregate demand new forms of money falling wages increasing prices plummeting growth surging unemployment
✔ falling wages, ✔ plummeting growth, and ✔ surging unemployment
This table compares the requirements for a career as an athletic trainer or an air traffic controller. A student who is interested in becoming an air traffic controller will make more money than an athletic trainer but will have a harder time finding a job. more money than an athletic trainer and will have an easier time finding a job. less money than an athletic trainer but will have an easier time finding a job. less money than an athletic trainer and will have a harder time finding a job.
✔ more money than an athletic trainer but will have a harder time finding a job.
An entrepreneur would most likely be interested in job security. financial gain. personal fulfillment. a flexible working environment.
✔ personal fulfillment.
Economist Friedrich Hayek argued that ______________________ can serve as signals in an economy.
✔ prices
Which educational institutions typically cost the most to attend? vocational schools community colleges public universities private colleges
✔ private colleges
One reason a student may seek a federal student loan instead of a private student loan is that private loans carry a higher interest rate than federal loans. federal loans are obtained by banks, while private loans are backed by the government. federal loans must be paid back more quickly than private loans. private loans are only available to parents, while federal loans may be issued to the student.
✔ private loans carry a higher interest rate than federal loans.
The Food and Drug Administration sets standards for advertising. product labeling. the environment. traffic safety.
✔ product labeling.
A purpose of government regulation in a mixed-market economy is to protect property rights. corporate rights. investor rights. states' rights.
✔ property rights.
Cooperatives save members money by purchasing supplies and services as a group. securing financing from banks as a group. charging more to sell their products as a group. sharing all profits democratically as a group.
✔ purchasing supplies and services as a group.
An entrepreneur must accept being accountable for the failure of the company because the entrepreneur is part of the management team. responsible for organizing the business. expected to contribute positively to society. expected to dedicate the most hours to the business.
✔ responsible for organizing the business.
Analyze the chart, which depicts a typical corporate structure. Based on the chart, the primary responsibility of shareholders is to run the business by electing a board of directors, who then hire the company's leaders. run the business by electing a board of directors and hiring a president and other leaders. make business decisions on the advice of a board of directors, a president, and other leaders. make business decisions on the advice of a board of directors, who follow the expertise of leaders.
✔ run the business by electing a board of directors, who then hire the company's leaders.
Regulatory agencies such as the OCC and the FDIC add _____________________ to the banking system.
✔ safety
Which describes a set amount of pay received by a worker over the course of a year? tuition expense salary hourly wage
✔ salary
Health care, business, retail, and education are examples of ________ industries. service entertainment manufacturing construction
✔ service
People who buy stock in a company are known as ______________________________________.
✔ shareholders
The most common business organizations in the United States are partnerships. sole proprietorships. corporations. franchises.
✔ sole proprietorships.
Work-study is a program that includes working at an outside job to help pay for school. taking a school job to help pay for an education. agreeing to serve in the military for financial aid. participating in a service program to receive aid.
✔ taking a school job to help pay for an education.
What must an entrepreneur assume when starting a business? that the correct location guarantees success that every product has a customer who wants it that clever market strategies may still fail to sell a product that raising funds is the most difficult step in starting a business
✔ that clever market strategies may still fail to sell a product
According to the article, what is the primary cause of the decline in poverty rates in China? US foreign aid UN development projects the introduction of free trade and entrepreneurship the decline in foreign investment
✔ the introduction of free trade and entrepreneurship
Now, we all know the result: the bursting of a debt-based bubble; the failure of several of the world's largest financial institutions; the sudden decline in available credit; the deterioration of the economy; the unprecedented intervention of the federal government to stabilize the financial markets and prevent a wider collapse; and most importantly, the terrible pain in the lives of ordinary Americans. And there are retirees who've lost much of their life savings, families devastated by job losses, small businesses forced to shut their doors. According to the president's speech, what were some effects of the financial crisis? Check all that apply. the loss of savings for many workers the increased strength of banks the increased stability in the economy the loss of credit in the economy growing economic challenges for many
✔ the loss of savings for many workers, the loss of credit in the economy, and growing economic challenges for many
Both newspaper journalists and postal workers have been negatively affected by the popularity of electronic communication and the Internet. declining literacy rates and lack of interest in reading. government budget cuts that led to fewer jobs in these fields. competition with cheaper labor performed by overseas workers.
✔ the popularity of electronic communication and the Internet.
An entrepreneur's first business fails, but their second attempt at the business is succeeding. You can assume that they learned from their mistakes. they are willing to take fewer risks. their products or services were unneeded. they were unwilling to take financial responsibility.
✔ they learned from their mistakes.
According to the video, what are the purposes of the Dodd-Frank Act? Check all that apply. to protect banks from abusive financial practices to improve accountability for banks to end bailouts to protect consumers from abusive financial practices to allow for greater banking profits
✔ to improve accountability for banks, ✔ to end bailouts, and ✔ to protect consumers from abusive financial practices
Which best explains why a sole proprietor would want a partner? to reduce the number of responsibilities to make it easier to raise funds for expansion to move into a more favorable tax bracket. to take advantage of little government oversight.
✔ to make it easier to raise funds for expansion
What is the economic outlook for occupations in the healthcare sector? weak to very poor depends on the economy will remain stable will increase in demand over time
✔ will increase in demand over time
A mixed-market economy is best defined as an economy with some government intervention. without government intervention. with some externalities. without corporate compliance.
✔ with some government intervention.
