Final Review Chapter 4,5,8

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Final Review Chapter 4,5,8 - Quiz


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 curve
    Explanation
    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.

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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 bargaining
    Explanation
    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.

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  • 3. 

    Fringe benefits for employees include

    • A.

      Paychecks

    • B.

      Sick leave

    • C.

      Tax exemptions

    • D.

      Wages

    Correct Answer
    B. Sick leave
    Explanation
    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.

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  • 4. 

    An organized refusal ro buy is called a

    • A.

      Lockout

    • B.

      Boycott

    • C.

      Strike

    • D.

      Picket

    Correct Answer
    B. Boycott
    Explanation
    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.

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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 union
    Explanation
    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.

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  • 6. 

    The demand curve is always

    • A.

      Downward sloping

    • B.

      Upward sloping

    • C.

      Irregular

    • D.

      Level

    Correct Answer
    A. Downward sloping
    Explanation
    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.

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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 high
    Explanation
    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.

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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 less
    Explanation
    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.

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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 wage
    Explanation
    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.

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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 factories
    Explanation
    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.

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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 force
    Explanation
    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.

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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. Market
    Explanation
    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.

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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 habits
    Explanation
    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.

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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 schedule
    Explanation
    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.

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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 US
    Explanation
    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.

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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. Rent
    Explanation
    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.

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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 costs
    Explanation
    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.

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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 up
    Explanation
    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.

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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 technology
    Explanation
    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.

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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 goods
    Explanation
    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.

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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 perform
    Explanation
    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.

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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 prices
    Explanation
    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.

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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 product
    Explanation
    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.

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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. Substitution
    Explanation
    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.

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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. Complements
    Explanation
    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.

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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 effect
    Explanation
    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.

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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 determination
    Explanation
    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.

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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 payments
    Explanation
    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.

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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 industrialization
    Explanation
    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.

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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 nationality
    Explanation
    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.

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  • Current Version
  • May 22, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • May 18, 2010
    Quiz Created by
    Carrelv

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