Econmics Study Guide

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Econmics Study Guide

This Is Strait Off Mr. Stewart's Final Exam Study Guide. It's The Final Exam.

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The situation in which some necessities have little value while some non-necessities have a much higher value is known as
 
paradox of value
Manufactured goods needed to produce other goods and services are called
 
capital goods
To arrive at an economic decision, a decision-making grid may be used to evaluate
 
alternative choices of action
Division of labor is a charcteristic of
 
assembly line production
The study of economics is important because it enables us to
 
become better decision makers
The dollar value of all final goods and services and the most comprehensive measure of a country's total production output is
 
Gross Domestic Product (GDP)
The Money used to buy the tools and equipment needed for production is known as
 
financial capital
An example of a market economy is
 
the United States
Which of the following is NOT considered an economic and social goal? economic effeciancy, economic growth, price stability, entrepreneurship
 
entreprenuership
Which group of people ultimately determines the products that a free enterprise economy produces?
 
consumers
The United States can best be described as having a
 
modified private enterprise system
All of the following are characteristic of a command economy EXCEPT: it can change directions drastically in a brief period of time; there is much uncertainty; it is not designed to meet the wants of consumers; it provides workers with few incentives to work hard
 
there is much uncertainty
A market economy
 
does not provide for everyone's basic needs
The minimum wage is an example of a federal law that supports
 
economic equity
The concept of voluntary exchange means
 
people freely and willingly engage in market transactions
The government's role in a mixed economy is that it is the
 
regulator charged with preserving competition
This regulates the sale of stock in a corporation
 
Securities and Exchange Commission
A merger of corporations involved in different steps of manufacturing or marketing is known as a
 
vertical merger
Non-profit organizations may
 
provide goods and services to members
The local chamber of commerce works to
 
promote the welfare of its members and the community
In a general partnership
 
partners usually draw up legal papers called articles of partnership
An advantage of a corporation is that
 
owners have limited liability in debt
All of the following are examples of the government playing a direct role in the economy EXCEPT: public utility regulation, police and fire protection, court systems, libraries
 
public utility regulation
Which of the following is NOT a nonprofit organization? multinational, producer cooperative, chamber of commerce, labor union
 
multinational
In its direct role as an economic organization, American government
 
owns and manages public utilities
An increase in the price of milk causes a decrease in the demand for cereal. The two products are
 
complements
Advertising, fashion trends, and new product introductions serve to
 
create consumer demand
Because a modest price increase has little or no effect, the demand for the product is
 
inelastic
A business doubled the price of a poduct in order to increase profits. Which of the following senarios might have occured?
 
A dramatic decline in revenues demonstrated the elasticity of the product.
A demand schedule shows
 
a listing of the various quantities demanded of a particular product at all prices that might prevail in the market
Consumers' willingness to replace a costly item with a less costly item is an example of
 
the substitution effect
When a manufacturer of pain medication reduced the price of medication by 30%, profits declined by almost exactly 30%. Deman for the product is
 
unit elastic
All of the following can change the market supply curve EXCEPT: the cost of labor; the expectation that prices are about to increase; a change in the demand for the product; the numbers of sellers offering the product
 
a change in the demand for the product
The supply of a product normally decreases if
 
taxes on the product increse
When employees are getting in each other's way, the firm is operating
 
in Stage II of production
The level of Profit-maximizing output is reached when marginal cost is
 
equal to marginal revenue
When producers offer fewer products for sale at each and every price,
 
the supply curve has shifted to the left
Many businesses are engaging in e-commerce because
 
fixed costs are minimal
Profits will be maximized when marginal revenue
 
equals marginal cost
Which of the following is NOT a reason why prices effectively perform the allocation function?
 
Prices remain suprisingly stable despite unexpected events
In a market economy, a high price is a signal for
 
producers to supply more and consumers to buy less
At a given price, a surplus occurs when
 
the quantity supplied is greater than the quantity demanded
The federal minimum wage law demonstrates
 
a societal choice for economic equity over effeciency
When economic or political conditions are unstable
 
the demand for gold increases
Prices enable a market to adjust to unexpected events by
 
adjusting consumption and production
All of the following are charcteristics of allocation by rationing EXCEPT: lack of fairness, high administrative cost, effeciency, diminished incentive for workers
 
effeciency
If a competitve market is at equilibrium, and there is a sudden increase in demand, than a temporary
 
shortage will occur and the price will increase
The theory of competitve pricing
 
is a set of ideal conditions and outcomes
Deficiency payments are part of a federal program to assist
 
farmers
A monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is a
 
technological monopoly
A decrease in competition within an industry can result in
 
a firm wielding economic and political power
The Sherman Antitrust Act
 
outlawed restraints and monopolies that hinered trade
Under perfet competition,
 
no seller sells a product about the prevailing market price
Mergers and acquisitions might result in
 
inadequate competition
The Clayton Antitrust Act
 
outlawed price discrimination
Indirectly, the government has improved the quality of information available to consumers through
 
its support for the internet
the Fair Labor Standards Act
 
established a federal minimum wage
Workers who have the skills to operate machines and who require a minimum amount of training are
 
semiskilled labor
The theory that wages are based on the supply and demand for the worker's skills is the
 
traditional theory of wages
All of the following can be used to establish more equal pay between man and women EXCEPT the: Civil Rights Act of 1964; Fair Labor Standards Act, set-aside contracts, Equal Pay Act of 1963
 
Fair Labor Standards Act
The National Labor Relations Act
 
established the right of unions to collective bargaining
When Labor and management ask a third party to collect information about a dispute and present a non-binding recommendations, they are using
 
fact-finding
Workers with knowledge-based education and managerial skills are
 
professional labor
Which of the following statements about the minimum wage is NOT accurate?
 
when expressed as a percentage of the average manufacturing wage, the minimum wage reached its peak in 1988
The invisible barrier that hinders women and minorities from advancement up the corporate ladder
 
is known as the glass ceiling
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