UNIT 2 ECONOMICS

1. buying without planning or forethought; "on the spot" purchase 2. a guarantee that is legally binding to the company who issues it 3. a detailed accounting of all the goods in stock 4. a deduction from a full purchase amount that is repaid to the consumer

1. impulse buying 2. warranty 3. inventory 4. rebates

1. restrictions and rules governing business conduct 2. a continuing increase in prices and weakening of the purchasing power of money 3. codes and rules instituted for the safety of a structure and the well-being of its inhabitants 4. specifications and safety measures required for buildings 5. specific district allowances and restrictions, usually governing the flow of business 6. granting of official permission to perform a service 7. to make payment to; to financially award a person 8. wage increases that compete with higher consumer prices in an ever-escalating upturn 9. actual money's worth for buying products 10. legally binding written agreement between purchaser and seller

1. regulations 2. inflation 3. building standards 4. fire codes 5. zoning laws 6. licensing 7. compensate 8. wage-price spiral 9. purchasing power 10. contract

A _____ __ _________ and the Federal Open Market Committee oversee the operation of the Fed.

Board of Governers

Inflation = Less money + More goods. True False

False

Risk-taking management involves making the basic decisions that affect the future of the business and is called operational management. True False

False

The end-of-year White Sale is a sale on office supplies. True False

False

Select the five dangers of a monopoly. More shopping centers Higher prices Wider advertising base No rival competition or alternative markets Lower quality Limitation or elimination of certain goods Smaller workloads Poor service and attitude Fewer employees

Higher prices No rival competition or alternative markets Lower quality Limitation or elimination of certain goods Poor service and attitude

Inflation = ____ money + Fewer goods.

More

Which answer is NOT TRUE? The U.S. Treasury, through its Bureau of the Mint and Bureau of Engraving and Printing, produces the nation's dollar and coin supply. There are 12 Federal Reserve Banks nationwide, and each serves a specific region of the country; along with the Board of Governors in Washington, D.C. Some monopolies are good. The Fed was started in 1933.

The Fed was started in 1933.

Mark the boxes that are TRUE. The Federal Communications Commission regulates radio and television to the extent of licensing stations and policing programming. The National Labor Relations Board regulates and oversees television practices. The Federal Aviation Administration regulates the airlines. The Federal Trade Commission regulates all newspapers. The Securities and Exchange Commission regulates the stock market. The Federal Reserve Board regulates the postal system. The Interstate Commerce Commission polices monopolistic practices. The Food and Drug Administration assesses all foods and drugs consumed.

The Federal Communications Commission regulates radio and television to the extent of licensing stations and policing programming. The Federal Aviation Administration regulates the airlines. The Securities and Exchange Commission regulates the stock market. The Interstate Commerce Commission polices monopolistic practices. The Food and Drug Administration assesses all foods and drugs consumed.

The Federal government also has a hand in regulation. Name two of the previously mentioned government agencies and their duties.

The Food and Drug Administration assesses all foods and drugs consumed. The Interstate Commerce Commission polices monopolistic practices.

"Acting ethically" is acting within the good principles of society and within the accepted rules of proper behavior. True False

True

In getting a rebate, the original receipt may be required. True False

True

Monopolies are judged by how strong the competition is. True False

True

The Fed works to keep the balance of financial strength at a good level by keeping interest rates low in recessions and letting them rise in economic "boom" times. True False

True

The U.S. Treasury keeps a checking account with the Federal Reserve. True False

True

The test of an entrepreneurial decision is whether or not there is a recognizable profit or loss. True False

True

It is the manager's job to ___________ the wishes of top management in such a way as to motivate employees to carry out these wishes.

communicate

Some businesses have stricter guidelines and even have their prices regulated. These price-regulated businesses are normally monopolies like ________ _________.

electric companies

Some businesses have stricter guidelines, and even have their prices regulated. These price-regulated businesses are normally monopolies like ________ _________.

electric companies

Some monopolies do not drive prices up and competitors out; they serve the public. An example is _______ _________.

electric companies

In a corporation, who acts as a go-between between the employee and the employer? entrepreneur manager board of directors individual worker

manager

In a(n) ________ , one company, or even a small group of cooperating companies has control of the supply of a product or service.

monopoly

What is operational management? making decisions that affect the future of a business the day-to-day operation of a business risk-taking

the day-to-day operation of a business

What people would make entrepreneurial decisions in a corporation? top management government board of directors individual worker

top management board of directors

How many federal reserve banks exist nationwide? Eight Twelve Fifteen Twenty

twelve

Jill's business co-workers are joining her in negotiating for higher wages since the prices at the supermarket have risen in the last 6 months. This increase in salary is known as a: federal standard wage-price spiral regulatory increase

wage-price spiral

Walt's fellow workers are going on strike since the price of food has increased dramatically within the last 14 months. They are looking to get a higher salary. This continual rise in salaries and consumer goods prices is known as a: federal inflation commission regulation wage-price spiral

wage-price spiral

Check the boxes that are TRUE. Monopolies are judged by how strong the competition is between the companies. In 1911 the U.S. Postal Service was broken into 3 separate departments. The Fed issues the nation's coin and paper currency. Trusts were unofficial mergers formed to control prices and production in the marketplace.

-Monopolies are judged by how strong the competition is between the companies. -The Fed issues the nation's coin and paper currency. -Trusts were unofficial mergers formed to control prices and production in the marketplace.

1. 1914 legislation that dealt against monopolies, particularly in the area of price-fixing 2. the dividing, sale, or liquidation of a corporation 3. agreed-upon unofficial mergers formed to control prices and production in the marketplace 4. the combining of two or more corporations or businesses 5. a principle or value

1. Clayton Antitrust Act 2. divestiture 3. trust 4. merger 5. ethic

1. a governmental regulation; a mandate which is instituted to safeguard the purchaser 2. amount of money the Fed needs to have as a balance in possession 3. Federal reserve-set interest rate to determine the amount needed to pay back the loan 4. a government investment in businesses, guaranteeing repayment 5. purchase or sale of government securities, increasing or decreasing amount of money banks lend

1. consumer protection law 2. reserve requirements 3. discount rate 4. government securities 5. open-market operations

1. specifications and safety measures required for buildings 2. money's actual worth for buying products 3. legally binding written agreement between purchaser and seller 4. to make payment to; to financially award a person

1. fire codes 2. purchasing power 3. contract 4. compensate

What are the five dangers of a monopoly?

1. higher prices 2. lower quality 3. elimination or limitation of certain goods 4. no rival competition or alternative market ​5. poor service or attitude

Most regulations aid which group(s)? Business Owners Business Employees Business Consumers Business Corporations

Business Employees Business Consumers

In 1914 the ________ prevented a merging of corporations to have intertwining boards of directors. Clayton Antitrust Act Federal Competition Law Federal Trade Commission Sherman Antitrust Act

Clayton Antitrust Act

Entrepreneurial management or Operational management? Involves the risk factor of a business. Entrepreneurial management Operational management

Entrepreneurial management

Paul wrote, "And, ye masters, do the same things unto them, forbearing threatening: knowing that your Master also is in heaven; neither is there respect of persons with him" ( ________ 6:9). Management by fear has no place in Christian management. Ephesians Galatians Corinthians Philippians

Ephesians

Paul wrote, "And, ye masters, do the same things unto them, forbearing threatening: knowing that your Master also is in heaven; neither is there respect of persons with him" ( ________ 6:9). Management by fear has no place in Christian management. Ephesians Galatians Corinthians Philippians

Ephesians

What is the chief principle in the 4 Biblical passages (Leviticus 19:13 and Deuteronomy 24:14-15) on management? Morality Fairness Wisdom Loyalty

Fairness

All monopolies are bad. True False

False

Check the boxes that are TRUE. If the car dealer will not or cannot show you the repair orders or identity of former owner, you should not buy the car. A demo car means that the car is show-room new, and a good deal. Have a mechanic friend look for hidden damage repairs on "new" (and used) cars. If a car salesman says, "We do not have one in stock, but maybe we can find one ... " buy the available car immediately and take advantage of the sale.

If the car dealer will not or cannot show you the repair orders or identity of former owner, you should not buy the car. Have a mechanic friend look for hidden damage repairs on "new" (and used) cars.

Check the boxes that are TRUE. If the car dealer will not or cannot show you the repair orders or identity of former owner, you should not buy the car. A demo car means that the car is show-room new, and a good deal. Have a mechanic friend look for hidden damage repairs on "new" (and used) cars. If a car salesman says, "We don't have one in stock, but maybe we can find one ..." buy the available car immediately and take advantage of the sale.

If the car dealer will not or cannot show you the repair orders or identity of former owner, you should not buy the car. Have a mechanic friend look for hidden damage repairs on "new" (and used) cars.

What is entrepreneurship? It is making decisions that affect the future of a business. It is the day to day operation of a business. It is completing jobs above the expected standard.

It is making decisions that affect the future of a business.

An important part of a Christian's obligation as manager is to be fair to his workers. "Thou shalt not defraud thy neighbor, neither rob him: the wages of him that is hired shall not abide with thee all night until the morning" ( ________ 19:13). Leviticus Deuteronomy Exodus Numbers

Leviticus

Entrepreneurial management or Operational management? Is concerned with the day-to-day activities and decisions of a company. Entrepreneurial management Operational management

Operational management

______ __________ is acting within the good principles of society and within the accepted rules of proper behavior.

acting ethnically

Caveat Emptor means "Let the buyer ______ ."

beware

In 1914, the Clayton Antitrust Act prevented a merging of corporations to have intertwined _____ __ _________.

board of directors

How does inflation affect businesses? In the first place, it hurts all creditors, but it helps: retailers debtors businesses creditors

debtors

When banks borrow money from a Federal Reserve Bank, they are given a certain interest rate to pay back the loan. If the Federal Reserve System raises the rate of interest, the banks will find it: harder to make loans. easier to make loans. easier to borrow more. harder to borrow more.

harder to make loans

Inflation is an economic condition in which the: money supply is decreasing faster than the supply of goods and services. money supply is increasing faster than the supply of goods and services. money supply is increasing slower than the supply of goods and services.

money supply is increasing faster than the supply of goods and services.

In which three ways does the Fed manage the country's money supply? open-market operations (purchase or sale of government securities) close-market operations (purchase or sale of banking transactions) change the discount rate inhibit inflation change reserve requirements international trade

open-market operations (purchase or sale of government securities) change the discount rate change reserve requirements

The Federal Communications Commission regulates: radio and television to the extent of licensing stations and policing programming. hiring practices. all credit transactions. campaign financing. food purity.

radio and television to the extent of licensing stations and policing programming.

After the trusts had eliminated the competition, they would cut back on production and _____ _______.

raise prices

A deduction from a full purchase amount that is repaid to the consumer is called a _____.

rebate

A deduction from a full purchase amount that is repaid to the consumer is called a ______.

rebate

Week by week the finances in this country can change, so the selling and buying of _________ helps to maintain equilibrium.

securities

The end-of-year White Sale is a big chance for savings. What is usually on sale? sheets and bedding paint office supplies

sheets and bedding

The Securities and Exchange Commission regulates the _____ ______.

stock market