Final Review Chapter 4,5,8
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this the second of 3 sections to review for a general economics senior in high school final
Questions and Answers
- 1.
The curve that shows the direct relationship between price and the quantity of the product is called the
- A.
Demand curve
- B.
Supply curve
- C.
Market curve
- D.
Equilibrium curve
Correct Answer
B. Supply curveExplanation
The correct answer is supply curve. The supply curve represents the relationship between the price of a product and the quantity of that product that suppliers are willing to produce and sell. As the price of a product increases, suppliers are generally willing to produce and sell more of it, resulting in an upward-sloping supply curve. Conversely, as the price decreases, suppliers may be less willing to produce and sell the product, leading to a decrease in quantity supplied and a downward-sloping supply curve.Rate this question:
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- 2.
The process in which union representatives speak for all members in an effort to negotiate a new contract is called
- A.
Coordinated campaign
- B.
Boycott
- C.
Collective bargaining
- D.
Certification
Correct Answer
C. Collective bargainingExplanation
Collective bargaining is the process in which union representatives negotiate a new contract on behalf of all members. This involves discussions and negotiations between the union and the employer to determine the terms and conditions of employment, such as wages, benefits, and working conditions. It is a key mechanism for workers to have a voice and influence in their workplace, allowing them to collectively address their concerns and improve their working conditions.Rate this question:
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- 3.
Fringe benefits for employees include
- A.
Paychecks
- B.
Sick leave
- C.
Tax exemptions
- D.
Wages
Correct Answer
B. Sick leaveExplanation
Fringe benefits are additional perks or advantages that employees receive in addition to their regular wages or salary. These benefits are provided by employers to enhance the overall compensation package and improve employee satisfaction. Sick leave is one such fringe benefit that allows employees to take time off from work when they are ill without losing their regular pay. It is a form of paid time off that ensures employees can take care of their health and well-being without financial strain. Therefore, sick leave is a valid example of a fringe benefit for employees.Rate this question:
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- 4.
An organized refusal ro buy is called a
- A.
Lockout
- B.
Boycott
- C.
Strike
- D.
Picket
Correct Answer
B. BoycottExplanation
A boycott refers to an organized refusal to buy or engage with a particular product, service, or company as a form of protest or demonstration. It is a nonviolent means of expressing discontent or disapproval towards a certain entity or its practices. During a boycott, individuals or groups may choose to refrain from purchasing goods or services, advocating for change or drawing attention to specific issues. This can have economic and social impacts, influencing the targeted entity to address concerns or make changes in order to regain support.Rate this question:
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- 5.
What type of institution engages collective bargaining?
- A.
Chamber of commerce
- B.
Nonprofit organization
- C.
Producer cooperative
- D.
Labor union
Correct Answer
D. Labor unionExplanation
Labor unions are institutions that engage in collective bargaining. They are formed by workers to protect their rights and interests in the workplace. Through collective bargaining, labor unions negotiate with employers on behalf of their members to secure better working conditions, wages, and benefits. This process allows workers to have a collective voice and leverage in negotiations, ensuring fair treatment and a balance of power between employees and employers. Therefore, labor unions are the type of institution that engages in collective bargaining.Rate this question:
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- 6.
The demand curve is always
- A.
Downward sloping
- B.
Upward sloping
- C.
Irregular
- D.
Level
Correct Answer
A. Downward slopingExplanation
The demand curve is always downward sloping because as the price of a good or service increases, the quantity demanded decreases, and vice versa. This is due to the law of demand, which states that as the price of a good increases, consumers are willing and able to buy less of it. Therefore, the demand curve shows the inverse relationship between price and quantity demanded, resulting in a downward slope.Rate this question:
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- 7.
A demand curve show that
- A.
Less will be purchased at low prices than at high prices
- B.
All people have the ability desire and willingness to pay
- C.
More will purchased at low prices than at high
- D.
Approximately the same amount will be purchased at low prices than at higher prices
Correct Answer
C. More will purchased at low prices than at highExplanation
The correct answer is "more will be purchased at low prices than at high prices." This is because as the price of a good decreases, consumers are more likely to buy it due to the lower cost. This is known as the law of demand, which states that as price decreases, quantity demanded increases. Therefore, at lower prices, more units of the good will be purchased compared to higher prices.Rate this question:
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- 8.
In a market economy, a high price is a signal for
- A.
Producers to produce more and buyers to buy less
- B.
Producers to produce more and buyers to buy more
- C.
Producers to produce less and buyers to buy less
- D.
Producers to produce less and buyers to buy more
Correct Answer
A. Producers to produce more and buyers to buy lessExplanation
In a market economy, a high price serves as a signal for producers to produce more and buyers to buy less. When the price of a product increases, it indicates that there is a high demand for it. This incentivizes producers to increase their production in order to take advantage of the higher prices and maximize their profits. On the other hand, buyers are likely to reduce their purchases due to the increased cost, leading to a decrease in demand. Therefore, a high price acts as a signal for producers to increase their production and for buyers to decrease their consumption.Rate this question:
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- 9.
All of the following are reasons women are paid less than men EXCEPT
- A.
It is illegal to pay men and women the same wage
- B.
Some men discriminate against women in the work place
- C.
Women tend to go into lower paying fields
- D.
Women's careers are interrupted by child rearing
Correct Answer
A. It is illegal to pay men and women the same wageExplanation
The correct answer is that it is illegal to pay men and women the same wage. This is because the question asks for the reason why women are paid less than men, and the statement implies that it is not illegal to pay men and women the same wage. The other options provided in the question, such as discrimination in the workplace, women choosing lower-paying fields, and interruptions in careers due to child-rearing, are all commonly cited reasons for the gender pay gap.Rate this question:
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- 10.
Which of the following is NOT a change in the American labor force?
- A.
Higher level of education attained by workers
- B.
Technological shift of the economic base away from factories
- C.
Decrease in farming
- D.
Increased number of women working outside the home
Correct Answer
B. Technological shift of the economic base away from factoriesExplanation
The technological shift of the economic base away from factories is not a change in the American labor force. This means that the American labor force has not experienced a significant shift in the type of industries or sectors it is employed in due to technological advancements. The other options, such as a higher level of education attained by workers, a decrease in farming, and an increased number of women working outside the home, all represent changes in the American labor force.Rate this question:
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- 11.
All people who are 16 years old and who are working or looking for work make up
- A.
Labor force
- B.
Labor unions
- C.
Civilian labor force
- D.
Wage force
Correct Answer
C. Civilian labor forceExplanation
The term "civilian labor force" refers to all individuals who are 16 years old or older and are either currently employed or actively seeking employment. This includes both those who are currently working and those who are unemployed but actively looking for work. The civilian labor force does not include individuals who are not actively seeking employment, such as retirees, students, or individuals who have chosen not to work for personal reasons.Rate this question:
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- 12.
What kind of system is the american economy based on?
- A.
Production
- B.
Cause and effect
- C.
Market
- D.
Centralized
Correct Answer
C. MarketExplanation
The American economy is based on a market system. In a market economy, the allocation of resources and the production of goods and services are determined by the interactions of buyers and sellers in the marketplace. Prices are set by supply and demand, and individuals and businesses make their own economic decisions based on self-interest. This system allows for competition, innovation, and individual freedom in economic activities.Rate this question:
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- 13.
What does it mean when it says the demand for a product is inelastic?
- A.
People will not buy the product when the price goes up
- B.
A price increase does not have a significant impact on buying habits
- C.
Customers are sensitive to the price of the product
- D.
There are very few satisfactory substitutes for the product
Correct Answer
B. A price increase does not have a significant impact on buying habitsExplanation
When it says the demand for a product is inelastic, it means that a price increase does not have a significant impact on buying habits. This implies that consumers are not very sensitive to changes in price and will continue to purchase the product even if the price goes up. This could be because the product is essential or unique, or there are no satisfactory substitutes available.Rate this question:
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- 14.
What kind of table lists the quantity of a good that a person will buy at different prices?
- A.
Demand curve
- B.
Demand schedule
- C.
Market demand schedule
- D.
Market demand curve
Correct Answer
B. Demand scheduleExplanation
A demand schedule is a table that lists the quantity of a good that a person is willing to buy at different prices. It shows the relationship between price and quantity demanded, allowing us to understand how consumers' behavior changes as the price of a good fluctuates. By analyzing the demand schedule, we can determine the demand curve, which represents the graphical representation of the relationship between price and quantity demanded.Rate this question:
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- 15.
Which of the following receives gov't subsidies that are in place to protect the population rather than for economic reasons?
- A.
National car company of Indonesia
- B.
Small farmers of France
- C.
Tobacco growers in the US
- D.
National airlines in Western Europe
Correct Answer
C. Tobacco growers in the USExplanation
Tobacco growers in the US receive government subsidies that are in place to protect the population rather than for economic reasons. This is because tobacco is a harmful and addictive product that poses significant health risks to the population. The government provides subsidies to tobacco growers in order to incentivize them to transition to alternative crops or reduce tobacco production, thus protecting the population from the negative effects of tobacco consumption.Rate this question:
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- 16.
Which of the following is a fixed cost for a store?
- A.
Short-term workers
- B.
Rent
- C.
Advertising
- D.
Inventory
Correct Answer
B. RentExplanation
Rent is considered a fixed cost for a store because it remains constant regardless of the level of production or sales. It is a recurring expense that the store must pay regularly, usually on a monthly basis, to maintain the physical space where the business operates. Unlike variable costs such as short-term workers, advertising, or inventory, which can fluctuate depending on the store's needs and activities, rent remains unchanged over a specific period, providing stability in the store's cost structure.Rate this question:
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- 17.
Total cost includes the sum of
- A.
Marginal cost and total product
- B.
Revenue and fixed cost
- C.
Fixed costs and variable costs
- D.
Average cost and variable cost
Correct Answer
C. Fixed costs and variable costsExplanation
The correct answer is fixed costs and variable costs. Total cost is the sum of fixed costs, which are costs that do not change with the level of production, and variable costs, which are costs that vary with the level of production. Fixed costs include expenses like rent, salaries, and insurance, while variable costs include expenses like raw materials, labor, and utilities. By considering both fixed and variable costs, a company can determine its total cost and make informed decisions regarding pricing, production levels, and profitability.Rate this question:
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- 18.
The quantity supplied increase when
- A.
The cost of inputs goes down
- B.
Taxes go down
- C.
Additional firms enter the industry
- D.
The price of the product goes up
Correct Answer
D. The price of the product goes upExplanation
When the price of a product goes up, it becomes more profitable for firms to produce and sell that product. As a result, firms are motivated to increase their production and supply more of the product to the market. This is because they can now earn higher revenues and potentially make more profit from each unit sold. Therefore, the quantity supplied increases as a response to the increase in price.Rate this question:
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- 19.
The use of robots on the assembly line is an example of
- A.
Increasing labor costs
- B.
Using skilled labor
- C.
Traditional production
- D.
Applied technology
Correct Answer
D. Applied technologyExplanation
The use of robots on the assembly line is an example of applied technology because it involves the application of automated machines to perform tasks that were previously done by humans. By using robots, companies can increase efficiency, productivity, and accuracy in the production process. This implementation of technology helps to streamline operations and reduce the reliance on manual labor, leading to improved productivity and cost-effectiveness.Rate this question:
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- 20.
Depreciation is the
- A.
Purchasing of new equipment
- B.
Cost of shipping goods
- C.
Gradual wear and tear on capital goods
- D.
Variable cost of labor
Correct Answer
C. Gradual wear and tear on capital goodsExplanation
Depreciation refers to the decrease in value of capital goods over time due to wear and tear. This gradual decline in value is a result of the regular use and aging of the equipment. As capital goods are used in the production process, they experience physical deterioration, obsolescence, and become less efficient. This decrease in value is accounted for as an expense and is spread out over the useful life of the asset. Therefore, gradual wear and tear on capital goods is the correct explanation for depreciation.Rate this question:
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- 21.
Production rises when workers are
- A.
Unskilled
- B.
Members of a union
- C.
Motivated to perform
- D.
Not involved in decision making
Correct Answer
C. Motivated to performExplanation
Motivated workers tend to perform better and put in more effort, resulting in increased production. When workers are motivated, they are more likely to be engaged, focused, and dedicated to their tasks. They may have a sense of purpose, personal drive, or incentives that push them to excel in their work. This motivation can lead to higher productivity levels and ultimately contribute to the overall success of the organization.Rate this question:
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- 22.
The basic decision for a supplier is
- A.
How much to produce without regard to demand
- B.
The amount to offer for sale at various prices
- C.
The willingness of consumers to purchase
- D.
The ability of consumers to purchase
Correct Answer
B. The amount to offer for sale at various pricesExplanation
The correct answer is "the amount to offer for sale at various prices." This is because the basic decision for a supplier involves determining how much of a product or service they should make available for sale, taking into consideration the different prices at which it can be offered. This decision is crucial in order to meet the demand of consumers and maximize profitability.Rate this question:
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- 23.
Demand is measured not only by consumer desire for a product but also by
- A.
Competition for the consumer
- B.
Demand for similar products
- C.
Opportunity costs
- D.
Ability and willingness to buy the product
Correct Answer
D. Ability and willingness to buy the productExplanation
Demand for a product is determined by the ability and willingness of consumers to purchase it. This means that even if consumers desire a product, if they do not have the financial means or the willingness to buy it, the demand will be low. Therefore, the correct answer is the ability and willingness to buy the product.Rate this question:
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- 24.
The ________ effect is the change in the quantity demanded due to a change in relative price of the product
- A.
Income
- B.
Substitution
- C.
Demand
- D.
Price
Correct Answer
B. SubstitutionExplanation
The substitution effect refers to the change in the quantity demanded of a product that occurs when there is a change in the relative price of that product compared to other substitute goods. This means that as the price of a product increases or decreases, consumers may choose to substitute it with other similar products that are now relatively cheaper or more expensive. Therefore, the substitution effect directly influences the demand for a product based on its price relative to other goods in the market.Rate this question:
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- 25.
An increase in the price of wombles causes a decrease in the mean for widgets. the two products are
- A.
Substitutes
- B.
Complements
- C.
Unrelated
- D.
Demand elastic
Correct Answer
B. ComplementsExplanation
An increase in the price of wombles causes a decrease in the mean for widgets, indicating an inverse relationship between the two products. This suggests that when the price of wombles goes up, people tend to buy fewer widgets. This implies that wombles and widgets are complements, as the increase in price for one product leads to a decrease in demand for the other product.Rate this question:
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- 26.
Consumers' willingness to replace a costly item with a less costly item is an example of
- A.
The substitution effect
- B.
Demand elastic
- C.
Income effect
- D.
Complements
Correct Answer
A. The substitution effectExplanation
Consumers' willingness to replace a costly item with a less costly item is an example of the substitution effect. The substitution effect occurs when consumers switch to a cheaper alternative when the price of a product increases. In this case, consumers are substituting the costly item with a less costly one to save money. This behavior demonstrates the substitution effect, as consumers are responding to the change in price by seeking a more affordable option.Rate this question:
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- 27.
The theory that wages are based on the supply and demand for a worker's skills is the
- A.
Signaling theory
- B.
Theory of negotiated wages
- C.
Market theory of wage determination
- D.
Seniority theory
Correct Answer
C. Market theory of wage determinationExplanation
The market theory of wage determination suggests that wages are determined by the supply and demand for a worker's skills. In other words, the wages of a worker are influenced by the scarcity or abundance of their skills in the labor market. When there is high demand for certain skills and a limited supply, wages tend to be higher. Conversely, when there is an oversupply of certain skills, wages may be lower. This theory emphasizes the role of market forces in setting wages rather than factors like negotiation or seniority.Rate this question:
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- 28.
Which of the following could be considered company benefits?
- A.
Overtime payments
- B.
Weekly wages
- C.
The employee's payment to Social Security
- D.
The employer's payment to Social Security
Correct Answer
A. Overtime paymentsExplanation
Overtime payments can be considered a company benefit because they are additional payments made to employees for working extra hours beyond their regular schedule. These payments are not required by law and are often offered as a way to incentivize employees to work longer hours when needed. Therefore, overtime payments can be seen as a form of compensation that provides an extra financial benefit to employees, making it a valid option for company benefits.Rate this question:
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- 29.
Which of the following is NOT a force that determines the wage rate?
- A.
Level of industrialization
- B.
Supply and demand
- C.
Organized labor
- D.
Government regulation
Correct Answer
A. Level of industrializationExplanation
The level of industrialization does not directly determine the wage rate. The wage rate is primarily influenced by factors such as supply and demand, organized labor, and government regulation. Industrialization may indirectly impact the wage rate by creating more job opportunities, but it is not a direct force that determines the wage rate.Rate this question:
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- 30.
For which kinds of discrimination doe the EEOC handle complaints?
- A.
Race only
- B.
Race and sex only
- C.
Religion and nationality only
- D.
Race, sex, religion and nationality
Correct Answer
D. Race, sex, religion and nationalityExplanation
The EEOC handles complaints for various types of discrimination, including race, sex, religion, and nationality. This means that individuals who believe they have been discriminated against based on any of these factors can file a complaint with the EEOC for investigation and potential resolution. The EEOC aims to ensure equal employment opportunities and protect individuals from unfair treatment based on these protected characteristics.Rate this question:
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