Chapter 6: Economics Trivia Quiz!

15 Questions | Total Attempts: 144

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Chapter 6: Economics Trivia Quiz!

This is an economics trivia that gives the learner an opportunity to review what they learned in chapter 6 this past classes. Understanding economics gives someone the opportunity to understand some trends that occur in the environment and how to predict such a trend to ensure the economic environment isn’t that affected. Press start and see how informed you are. All the best!


Questions and Answers
  • 1. 
    The regional multiplier is:
    • A. 

      The ratio of nonbasic to basic employment

    • B. 

      The ratio of basic to nonbasic employment

    • C. 

      the ratio of total to basic employment

    • D. 

      The ratio of nonbasic to total employment

    • E. 

      The ratio of total to nonbasic employment

  • 2. 
    Since 1969, the number of financial services companies in the top 20 of the Fortune list of largest U.S. corporations has increased.
    • A. 

      True

    • B. 

      False

  • 3. 
    The largest U.S. corporation, in terms of both revenues and employment, is:
    • A. 

      Exxon-Mobil

    • B. 

      General Electric

    • C. 

      Verizon Communications

    • D. 

      Wal-Mart

    • E. 

      IBM

  • 4. 
    In comparison to preindustrial times, which of the following sectors of the economy is smaller than it used to be?
    • A. 

      Primary

    • B. 

      Secondary

    • C. 

      Tertiary

    • D. 

      Quaternary

  • 5. 
    Which of the following was not one of the keys to wealth creation in the industrial economy?
    • A. 

      Economies of scale

    • B. 

      Specialization

    • C. 

      Mechanization

    • D. 

      Substitution of labor for capital

  • 6. 
    According to the least-cost location theory, a firm for which the cost to transport raw materials is high is most likely to locate:
    • A. 

      Near the market for its goods

    • B. 

      Near its source of raw materials

    • C. 

      Near a large skilled labor pool

    • D. 

      Near a port

  • 7. 
    Tertiary activities comprise a large and growing segment of the labor force in the United States today.
    • A. 

      True

    • B. 

      False

  • 8. 
    Cost savings resulting from the production of larger quantities of a product are called:
    • A. 

      Cost minimization

    • B. 

      Economies of scale

    • C. 

      Labor productivity

    • D. 

      Transaction costs

  • 9. 
    An example of a market-oriented manufacturing industry is:
    • A. 

      Paper manufacturing

    • B. 

      Beer brewing

    • C. 

      Oil refining

    • D. 

      Toy manufacturing

  • 10. 
    What kind of economies are achieved when an area develops a specialization in a certain industry?
    • A. 

      Urbanization

    • B. 

      Transaction

    • C. 

      Disagglomeration

    • D. 

      Localization

  • 11. 
    Which of the following is not an outcome of the “Wal-Mart Effect” as identified in the case studies?
    • A. 

      Increased consumer buying power

    • B. 

      Improved wages, benefits, and union representation for retail sector workers

    • C. 

      Long-term decline in local retail employment (i.e., competitors close their doors)

    • D. 

      Increased infrastructure costs of supporting off-Main Street locations (i.e., large shopping centers)

  • 12. 
    Basic industries are industries that produce goods or services that are sold mostly to people/firms outside of the region.
    • A. 

      True

    • B. 

      False

  • 13. 
    The unseen costs of doing business, that is, of gaining information, making contracts, finding suppliers, learning about and meeting regulations, etc., are known as:
    • A. 

      Transaction costs

    • B. 

      Economic costs

    • C. 

      R&D costs

    • D. 

      Agglomeration cost

  • 14. 
    Break-of-bulk locations are areas that produce raw materials.
    • A. 

      True

    • B. 

      False

  • 15. 
    A high-value, information-based service is a:
    • A. 

      Primary activity

    • B. 

      secondary activity

    • C. 

      Tertiary activity

    • D. 

      Quaternary activity

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