Chapter 6: Economics Trivia Quiz!

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

True

False

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

Near the market for its goods

Near its source of raw materials

Near a large skilled labor pool

Near a port

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

True

False

4. The regional multiplier is:

The ratio of nonbasic to basic employment

The ratio of basic to nonbasic employment

The ratio of total to basic employment

The ratio of nonbasic to total employment

The ratio of total to nonbasic employment

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

Economies of scale

Specialization

Mechanization

Substitution of labor for capital

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

Exxon-Mobil

General Electric

Verizon Communications

Wal-Mart

IBM

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

Primary

Secondary

Tertiary

Quaternary

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

Cost minimization

Economies of scale

Labor productivity

Transaction costs

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

Transaction costs

Economic costs

R&D costs

Agglomeration cost

10. An example of a market-oriented manufacturing industry is:

Paper manufacturing

Beer brewing

Oil refining

Toy manufacturing

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

Urbanization

Transaction

Disagglomeration

Localization

12. Which of the following is not an outcome of the "Wal-Mart Effect" as identified in the case studies?

Increased consumer buying power

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

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

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

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

True

False

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

True

False

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

Primary activity

Secondary activity

Tertiary activity

Quaternary activity