Econ final

Question 1 Consider these two books: The Jungle By Upton Sinclair Unsafe at Any Speed By Ralph Nader Public interest in these books led to the passage of laws to protect a. investors. b. consumers. c. employees. d. competitors.

B

Question 1  Which of these questions measures the efficiency of a tax system? a. How well does the system fund the expenses of government? b. How much of the tax gets into the public treasury? c. How simple is the tax code to understand and obey? d. How fairly are the taxes distributed between rich and poor?

B

Question 10 Which of these is a common resource? a. bread b.roads c. pencils d. shoes

B

Question 10 Which sentence best explains why the number of manufacturing jobs has declined? a. More jobs are being taken by women and minorities. b. Training and technology have increased worker productivity. c. Older employees no longer have to retire at a certain age. d. Fewer products are now made in the United States.

B

Question 5 The difference between real and nominal GDP is that real GDP is adjusted for a. international trade. b. entitlements. c. unemployment. d. inflation.

D

Question 2 Establishment of which regulatory agency is associated with a 60 percent drop in workplace fatalities since 1971? a. Occupational Safety and Health Administration b. Environmental Protection Agency c. Consumer Product Safety Commission d. National Highway Traffic Safety Administration

A

Question 2 Foundations and land trusts are examples of a. nonprofit organizations. b. franchises. c. cooperatives. d. trade associations.

A

Question 2 How do state and local governments typically generate revenue to pay for education, law enforcement, and fire protection services? a. property and sales taxes b. corporate and business taxes c. lotteries and municipal bonds d. pay roll and insurance taxes

A

Question 3 Outsourcing is the practice of a. using outside contractors instead of staff. b. letting employees work from home. c. hiring temporary workers without benefits. d. setting up factories in other countries.

A

Question 4 Right-to-work laws in many states prohibit employers from a. requiring workers to join a labor union. b. laying off workers when business slows down. c. promoting only high-performing employees. d. making prior experience a condition of employment. 1/1

A

Question 6 Which of these is one reason young workers seek entry-level positions? a. to start building experience in a field b. to enjoy more leisure with other workers c. to avoid expectations of hard work d. to receive high pay right away

A

Question 6 The market value of all final goods and services produced within a country in a given time period is the a. gross domestic product. b. net of exports minus imports. c. consumer price index. d. wage-price spiral.

A

Question 7 Which of these people is part of the labor force? a. a laid-off carpenter looking for a job b. a mother choosing to stay home with her kids c. a career soldier stationed overseas d. a retiree who worked 40 years in one place

A

Question 8 Which of these is a progressive tax? a. luxury tax b. property tax c. excise tax d. Social Security tax

A

Question 9 Which of these agencies has primary responsibility for preventing price fixing and bid rigging? a. Antitrust Division of the Department of Justice b. Consumer Protection Agency c. Department of Labor d. Securities and Exchange Commission

A

Question 9 Which of these sources of government revenue best illustrates the benefits-received approach to tax equity? a. A driver deposits coins in a parking meter. b. Funds for Medicare are withheld from a paycheck. c. A percentage of a large inheritance is paid to the government. d. A corporation pays taxes on its income.

A

Question 2 One major reason women earn less than men on average is that women a. have less opportunity to learn basic job skills in entry-level jobs. b. more often lose experiences by interrupting their careers for family c. are more likely to look for manufacturing jobs. d. have become a majority of all paid workers.

B

Question 3 Food stamps, the Earned Income Tax Credit, and unemployment insurance are examples of a. natural monopolies. b. income redistribution. c. regulatory capture. d. negative externalities.

B

Question 3 Most sales taxes are regressive because a. most people cannot afford to buy such luxury goods as yachts, furs, and diamonds. b. poorer tax payers spend a larger proportion of their income on tax able goods and services than do wealthier tax payers. c. taxable purchases are capped at $50,000 a y ear. d. wealthier people pay less tax on a purchase than poorer people would pay on the same item.

B

Question 4 How do economists think private ownership most affects property maintenance? a. It is helpful because owners have to pay taxes on the property. b. It is helpful because owners have an incentive to care for the property. c. It is harmful because owners save money by letting property get run down. d. It is harmful because non-owners may throw trash on the property.

B

Question 6 Venture capitalists invest in new businesses in exchange for a. interest payments. b. ownership shares. c. management jobs. d. broad publicity .

B

Question 6 When a tax becomes a disincentive to work, the resulting reduction in productivity is a form of a. marginal tax rate. b. deadweight loss. c. tax incidence. d. entitlement.

B

Question 7 The official unemployment rate may be overstated because it ignores a. parents who do not want jobs because they are caring for young children. b. involuntary part-time workers who would prefer to work full time. c. workers in the illegal or informal economy who do not report their jobs. d. discouraged workers who have given up looking for a job.

B

Question 8 Which of these principles determines wage rates in a labor market? a. globalization b. supply and demand c. risk and reward d. collective bargaining

B

Question 9 Which period of U.S. history brought legislation most supportive to collective bargaining? a. Industrial Revolution b. New Deal c. post- Civil War d. post- World War II

B

Which of the following best explains why the market is an inefficient way to allocate immunization against infectious diseases? a. The revolving door between government and industry gives drug companies too much power to be left to the market alone. b. Markets do not take into account that preventing the spread of disease affects people in addition to the producer and the consumer. c. In a market, competition among manufacturers may result in the production of vaccines that nobody wants. d. In a market, too much vaccine is likely to be produced, taking resources from other needs.

B

Question 1 A decline in economic activity over a period of at least six months is called a a. panic. b. contraction. c. recession. d. depression.

C

Question 1 1. Which statement is true of all entrepreneurs? a. They hire employees. b. They work short hours. c. They take a risk. d. They earn a profit.

C

Question 2 Business investment is most likely to increase during which phase of the business cycle? a. peak b. contraction c. expansion d. trough

C

Question 3 One advantage of a partnership over a sole proprietorship is that a partnership a. avoids double taxation. b. faces less regulation. c. can get credit more easily.

C

Question 4 The Internal Revenue Service routinely collects taxes from employees through a system of a. audits. b. assessments. c. withholding. d. entitlement.

C

Question 5 To calculate the amount of tax due, multiply the tax base by the tax a. assessment. b. referendum. c. rate. d. return.

C

Question 5 To expand their business, sole proprietorships most often depend on money from a. applying for grants. b. soliciting charitable donations. c. reinvesting their profits. d. selling stock.

C

Question 5 What is the goal of affirmative action? a. to raise wages for jobs that are considered to benefit the public b. to promote new immigration from more parts of the world c. to increase the presence of historically under-represented groups d. to reverse the trend toward national dependence on imports

C

Question 6 What is the economic purpose of market regulation? a. to translate widely accepted economic traditions into law b. to improve the United States' comparative advantage in foreign trade c. to influence the economic behavior of individuals and firms. d. to assert federal economic power over the states

C

Question 7 What is the main goal of a cooperative? a. to earn its members a profit on investment b. to provide guaranteed employment for its members c. to offer its members low-cost goods or services d. to expand by receiving royalties from its members 1/

C

Question 7 When federal expenditures exceed federal tax revenues, how does the government fund the deficit? a. by printing additional paper money b. by asking not-for-profit corporations for help c. by borrowing money through the sales of bonds d. by taking a loan from the Federal Reserve Bank

C

Question 9 Which form of business organization is most common? a. corporation b. business franchise c. sole proprietorship d. partnership

C

1 Question 8 What is the role of silent partners in a limited partnership? a. They work for the company but do not make any investment. b. They have unlimited liability but do not have a voice in decisions. c. They take an active role in operations but have limited liability. d. They contribute capital but are not involved in day -to-day operations.

D

1/1 Question 4 One cause of inflation is a. a tightening of the money supply . b. a growth in the size of inventories. c. decrease in consumer demand. d. a rise in the cost of production.

D

Question 1 How have fringe benefits lowered wages in some industries? a. They make the jobs less desirable. b. They motivate workers to change jobs. c. They complicate government regulation. d. They increase overall costs to employers. 1/1

D

Question 10 Which of these is a disadvantage of turning a partnership into a corporation? a. less management skill b. continuity issues c. expanded liability d. loss of control

D

Question 10 Which of these taxes is the leading source of revenue for the federal government? a. payroll taxes b. inheritance taxes c. corporate income taxes d. individual income taxes

D

Question 10 Why is the unemployment rate above zero when the economy reaches full employment? a. Most workers do not have enough training for the best jobs. b. There are never enough jobs for every one who wants one. c. Most jobs lay off workers when the economy slows. d. There are always some people in transition between jobs.

D

Question 3 Keith lost his job at his company 's telephone switchboard when the company installed an automated phone system. Which type of unemployment did Keith experience? a. frictional b. seasonal c. cyclical d. structural

D

Question 4 The board of directors of a corporation is selected by and accountable to the a. stakeholders. b. chief executive officer. c. founding entrepreneur d. shareholders. 1/1

D

Question 5 The U.S. Patent and Trademark Office was established to protect a. inherited property. b. public use property. c. corporate property. d. intellectual property.

D

Question 7 Which historical period brought the greatest increase in government involvement in the economy? a. Reconstruction (after Civil War) b. Gilded Age (late 1800s) c. Progressive Era (early 1900s) d. Great Depression (1930s)

D

Question 8 Which condition is considered normal in the United States? a. deflation b. stagflation c. hyperinflation d. creeping inflation

D

Question 9 Why is consumer confidence important to the business cycle? a. Consumers who lack confidence work longer hours, increasing productivity. b. Confident consumers are content with what they have, reducing demand and inflation. c. Consumers who lack confidence spend recklessly, triggering a speculative bubble. d. Confident consumers purchase more, increasing business profits and employment.

D