Unit 5 Economics Review
Which of the following distinguishes newly industrialized countries from other LDCs?
NICs consume a greater amount of energy than most LDCs
Which best describes a sole proprietorship?
a business owned by an individual
A nation with high energy consumption MOST LIKELY has
a high level of specialization
Which of the following BEST describes economic development?
a process through which a nation improves its people's well being
Which advantage of a sole proprietorship could also be a disadvantage?
a sole proprietor has full control
The owner of a factory that manufactures clothing buys several clothing stores to sell the clothing the factory produces. This is an example of
a vertical merger
Which of the following businesses would most likely be subject to laws that regulate the disposal of dangerous chemicals?
an auto repair shop
What does a partner in a limited liability partnership have that a limited partner in a limited partnership does not have?
business involvement
Which type of cooperative organization would attract people who wanted to pay a lower price for organic food?
consumer cooperative
What is the KEY difference between cooperatives and nonprofits?
cooperatives benefit their members and nonprofits mainly benefit the public
Which term does the Bureau of Labor Statistics use to describe people who once sought work but have given up looking for a job?
discouraged workers
How might employers benefit from workplace safety laws?
employers can offer lower wages because more employees will want to work in a safer environment
Why might a limited partnership have a greater ability to raise capital than a general partnership?
increased attractiveness due to limits on liability
What generally happens to the equilibrium wage when demand for workers is low and supply is high?
it gets lower
Why is the demand for labor called a derived demand?
it is set by the demand for another good or service
How does a lack of financial resources for fringe benefits affect a sole proprietor's ability to run a business?
it makes it difficult for the owner attract good employees
Why is per capita GDP a good tool for measuring different countries' relative levels of development?
it provides an average of the GDP across a whole population
What role does the Securities and Exchange Commission fulfill with regard to corporations?
it regulates the stock market
Why does the consumption of a large amount of nonessential goods indicate a high level of development?
it suggests that the people have more than enough to meet their basic needs
What does the board of directors in a corporation do?
make all major decisions for the corporation
Which describes a way the government provides an incentive to a non profit hospital so that it can offer free services to poor patients?
not requiring the hospital to pay taxes
Which of the following activities is most closely associated with nonprofit professional organizations?
providing information and training related to specific occupations
Which type of cooperative organization would attract people who needed help preparing their income tax returns?
service cooperative
Over the past two decades, the US economy has shifted from a manufacturing economy toward a _________ economy
service producing
Why is liability the biggest disadvantage of a sole proprietorship?
the owner could low personal property if the business fails
What happens to the stockholders when a corporation files for bankruptcy?
the owners can lose only the money they have invested
Suppose data show an increase in offshoring by US companies. Which of the following describes a possible effect on the unemployment rate?
the unemployment rate would increase, because jobs formerly taken by US employees are now located in other countries
Why would someone be willing to share the economic right to business ownership by forming a general partnership?
to limit liability
What risk do limited partners face that general partners do not?
complete dependence on business abilities of others
Which of the following is a practice that US companies follow to lower costs?
hiring more part time workers
If an advertising business bus new computers for its employees, how might its productivity of labor be affected?
it would increase
what disadvantage do partners and franchises share?
limits in control of the business
Do multinationals have more or fewer regulations than corporations that are in just one country?
more, because they have to obey laws and pay taxes in more than one country
Which term describes a perceived barrier that may prevent qualified women from receiving promotions to top level jobs?
the glass ceiling
Which of the following BEST defines the learning effect theory?
with increased education comes an increased efficiency of production, resulting in higher wages
