objective exam 2- Econ

Which of the following is an example of a "leakage" in the circular flow of income model: A business paying its employees' salaries A business retaining earnings to pay off debt An individual buying retail goods from a business A business buying goods from another business

A business retaining earnings to pay off debt

Which of the following examples best exhibits a job task with high depth and low scope: A manager makes out the weekly work schedules, hires employees, and supervises a department. A manager evaluates employee performance and implements a new method of productivity. A manager signs employees' time cards and hands them to employees. A manager selects the products to be sold for a business and selects the employees who will work in each business activity.

A manager selects the products to be sold for a business and selects the employees who will work in each business activity.

sales tax

A tax on a sale of merchandise or services

property tax

A tax on the value of a property

Which of the following statements regarding federations is true: A union federation consists of several national unions of different kinds. Only one union federation, the AFL-CIO, exists in the United States. Local union members pay dues directly to their union federation. Only industrial unions and professional unions can join a federation.

A union federation consists of several national unions of different kinds.

excise tax

Consumer tax on a specific kind of merchandise, such as tobacco.

A U.S. company begins selling its products in France. Despite brisk sales, the company doesn't make enough profit to cover its expenses. When setting prices, the company simply used the same prices in both countries. For example, $5.99 = 5.99 French francs; $2.89 = 2.89 French francs. What risk of international business did the company not consider? Language variations Currency fluctuations Differences in laws Opportunity costs

Currency fluctuations

Which of the following is a true statement regarding an employer's tax obligations: Employers pay a matching amount of employees' Social Security and Medicare taxes. Employers pay the same amount in taxes for each employee. Employers pay taxes only for full-time employees. Employers may "opt out" of paying payroll taxes.

Employers pay a matching amount of employees' Social Security and Medicare taxes.

Which of the following is an advantage to workers of having a union represent them: Payment of union dues Payment of wages during strikes Democratic votes on issues Fair treatment of employees

Fair treatment of employees

What technique is a company using to combat the disadvantages of labor specialization when it expands job tasks to include other like tasks? Increasing job scope Increasing job depth Motivation Job rotation

Increasing job scope

What is a likely result when workers' wages rise throughout the economy while productivity decreases?

Inflation

What does the IRS do?

Issue tax refunds

Which of the following labor issues is most affected by the use of technology: Benefits Job security Wages Union security

Job security

Union members join up at what level of a union? Local National International Federation

Local

Workers in your company have decided to join a union. As a member of management, which form of union representation will you encourage? Open shop Agency shop Closed shop Union shop

Open shop

Actors and athletes belong to what types of unions? Trade unions Craft unions Professional unions Industrial unions

Professional unions

All night-shift workers at a hotel have reported for work, but they are refusing to do their assigned jobs. What kind of pressure strategy is being used by the workers? Lockout Sympathetic strike Sit-down strike Injunction

Sit-down strike

income tax

Tax paid to the state, federal, and local governments based on income earned over the past year.

Define specialization

The process of making the best use of resources in the production of goods and services

What is the effect on society of a falling growth rate in productivity? Resources are used more efficiently. The standard of living drops. Inflation is prevented. Increased labor disputes may occur.

The standard of living drops.

Which of the following is a true statement regarding excise taxes: They are a tax on employment. They are built into the overall price of a product. They apply to all retail sales. They are based on a business's income.

They are built into the overall price of a product.

Which of the following is a true statement about sales taxes: They are the same thing as excise taxes. They become trust funds for Social Security and Medicare. They do not apply to retail products. They are levied by state and local governments.

They are levied by state and local governments

Why do unions and management experience conflicts? Unions want to close businesses and try to achieve that goal through strikes, boycotts, and corporate campaigns. They both want to close businesses and have similar ideas about how to achieve that goal. Management wants to keep the business operating and has ideas similar to those of unions about how to do that. They both want to keep the business operating but have different ideas about how to reach that goal.

They both want to keep the business operating but have different ideas about how to reach that goal.

Which of the following is true of employees whose jobs have high depth: They set their own pace. They follow strict guidelines. They make very few decisions. They perform only one task.

They set their own pace

Which of the following is true of employees whose jobs have high depth: They set their own pace. They follow strict guidelines. They make very few decisions. They perform only one task.

They set their own pace

What is the primary responsibility of a national union? To encourage picketing and boycotting at the local level To elect local leaders who are involved in contract negotiations To provide financial support for political candidates who favor labor To assist in contract negotiations for all its local unions

To assist in contract negotiations for all its local unions

Why should productivity be measured? To find new ways to meet customer needs To see whether the business's objectives are being met To determine the best ways to invest company profits To locate new sources of inputs

To see whether the business's objectives are being met

Which of the following types of legal union representation is preferred by unions in states without right-to-work laws: Closed shops Union shops Open shops Agency shops

Union shops

What kind of strike occurs when the members of a union local stop work without the consent of their national organization?

Wildcat

expenditure

an expense; the amount needed to be paid out

A union worker who is just beginning in the occupation is referred to as a(n) apprentice. master. journeyman. assistant.

apprentice.

When management and union leaders negotiate but cannot reach an agreement, either one may call for a(n) grievance. injunction. arbitrator. probation.

arbitrator

An advantage to companies of unionization is more fringe benefits. promotion based on seniority. union assistance in decision making. assistance in recruitment.

assistance in recruitment.

When tax revenue is not enough to cover government expenditures, the government must ________.

borrow funds.

An accurate statement concerning labor specialization would be that it means workers perform many jobs. can be of different types. reduces worker dependency. decreases production rates.

can be of different types.

The use of robots in assembly-line work is a form of specialization involving natural resources. capital goods. human resources. capitalism.

capital goods.

The United Association of Plumbers and Pipefitters is an example of a(n) professional union. industrial union. union federation. craft/trade union.

craft/trade union.

The main tax disadvantage of a corporation is: double taxation on dividends. higher income-tax rates. separation from owners' personal taxes. greater liability for owners.

double taxation on dividends

A person who sells casual sportswear and can also sell formal clothing is an example of increased quality of work. ease of transferring to other like jobs. simplified worker training. decreased level of skill.

ease of transferring to other like jobs.

The highest level of labor union organization is the: state. federation. national. local.

federation

The most goods and services are produced when people use their skills and abilities to do the jobs that pay the highest wages. requiring the most education. involving the least amount of effort. for which they are best suited.

for which they are best suited.

A disadvantage to workers of having a union represent them is that they pay supplemental unemployment benefits. must abide by safety rules. are promoted based on seniority. have to pay union dues.

have to pay union dues.

Unions that do not belong to a federation are known as __________ unions. international local industrial independent

independent

Though employees who work for auto companies hold a variety of different jobs, they may all belong to the same union—the United Auto Workers. This is an example of a(n) __________ union. professional craft trade industrial

industrial

A disadvantage to companies of unionization is that the union discourages recruitment. job promotions are based on seniority rather than ability. the cost of union dues can be expensive. the labor contract is insecure.

job promotions are based on seniority rather than ability.

The young children's section of a U.S. amusement park features cartoon characters from a German TV show. Although the amusement park signed an agreement and paid a fee to display images of the cartoon characters, the TV show doesn't own or manage the park in any way. This is an example of a strategic alliance. franchising. licensing. exporting.

licensing

A worker who sorts all of a business's mail every day is performing a task that has low depth and high scope. low depth and low scope. high depth and low scope. high depth and high scope.

low depth and low scope.

The circular flow of income model is a simplified depiction of ______

money flowing through a market economy

Ski instructors in Colorado are examples of workers whose jobs involve specialization by obsolescence. natural resources. stages of production. capital goods.

natural resources.

The formula that is generally used to measure productivity is: goods divided by time. labor divided by resources. outputs divided by inputs. inputs divided by labor.

outputs divided by inputs.

A country's standard of living can be calculated by dividing the goods and services its people have by: social services. population. output. total production.

population.

The basis of a markets economy is a ______

private enterprise

One way for a business to increase productivity is to increase its imports. environmental concern. prices. research and development.

research and development.

differentiate between scope and depth

scope is the number of different operations you do on the job and the frequency with which you do them depth is the amount of control you have over the tasks that you do

Many different workers are needed to carry out the steps in processing milk before it can be distributed to consumers. This is an example of: specialization by stage of production or task. specialization by trade or profession. job obsolescence. job scope.

specialization by stage of production or task.

The role of government in a market economy is to

spend the money it receives in tax revenue.

An employee in a gift store is assigned to receive products in the warehouse, while another is assigned to sell the products. This is considered to be specialization by automation. stage of production or task. trade or profession. capital goods.

stage of production or task.

The overall objective of workers who form labor unions is to: obtain reasonable working hours. promote better working conditions. obtain fair wages. strengthen their bargaining power.

strengthen their bargaining power.

Local 476 of the UAW walked off the job in support of Local 477 of the UAW, which was striking. This is known as a __________ strike. jurisdictional wildcat sit-down sympathetic

sympathetic

What does it mean when taxes pass through an entity?

the businesses profits and losses are claimed on the owners account

Bricklayers, science teachers, dentists, and truck drivers are examples of specialization of labor by geographic region. trade or profession. job task. stages of production.

trade or profession.

The use of thorough job orientation helps to increase productivity through mass production. participative decision making. training and education. quality of work life.

training and education.

The degree of unionization in the United States varies based on a business's geographical location and use of pressure strategies. type of industry and use of pressure strategies. type of industry and geographical location. geographical location and level of union organization.

type of industry and geographical location.