Term
| What effect does new technology usually have on an economy? |
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Definition
| it makes the economy stronger and more efficient |
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Term
| Which of the following was a free market philosopher? |
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Definition
|
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Term
| What is the most effective way to make their desires known to businesses? |
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Definition
| by the purchases they make |
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Term
| What does the process of specialization do for an economy? |
|
Definition
| it makes it more efficient |
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Term
| 1) Your running shoes were designed in the United States but assembled in Asia by a company called Runner Pro. Runner Pro is a: |
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Definition
| multinational corporation |
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Term
| Current labor market trends include |
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Definition
| An increase in service jobs accompanied by a decrease in manufacturing jobs |
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Term
The strength of labor unions has declined in recent years because
a)The number of white collar jobs is increasing
b)The number of blue collar jobs is decreasing
c)Some manufacturers have relocated to countries where labor is cheaper or to the American South
d)All of the above |
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Definition
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Term
Which of the following is an advantage of a sole proprietorship?
a)No one is responsible if it fails
b)It is the least-regulated form of business organization
c)It is an easy way to make a lot of money
d)It is easy to get financing to start one |
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Definition
| B. it is the least regulated form of business organization |
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Term
| 5) A joining of two or more businesses that are involved in different stages of producing the same good or service is called: |
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Definition
|
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Term
| 6) Why is it easier for a partnership to borrow money and to hold good employees that it is for a sole proprietorship to do so? |
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Definition
| A partnership has more personal stability and access to more money |
|
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Term
| What is a fringe benefit? |
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Definition
| A payment other than wages or salaries |
|
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Term
| What are the money and other valuables that belong to a corporation or partnership called? |
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Definition
|
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Term
| What is a business organization owned by a group of people for their mutual benefit? |
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Definition
|
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Term
| 10) Dr. Ruiz shares equal responsibility and liability with her colleagues in their medical practice. Her practice is a: |
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Definition
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Term
| You are looking for a job with many fringe benefits. You therefore probably want to work for a: |
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Definition
|
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Term
| Your uncle owns a convenience store that has branches nationwide. His store is an example of a: |
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Definition
|
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Term
| What is collective bargaining? |
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Definition
| Union and company representatives meeting to negotiate a new labor contract |
|
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Term
| How are wages for a particular job determined? |
|
Definition
| By the equilibrium between the supply and demand for workers for that job |
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Term
| What is an example of using physical capital instead of human capital to get a job. |
|
Definition
| an automatic teller machine |
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Term
| What could be considered company benefits? |
|
Definition
| The employers payments to social security |
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Term
| When your grandfather and his friends entered the work force in 1950, they were likely to have jobs in: |
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Definition
|
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Term
| Tracy, a recent college graduate who earned straight “A’s” as a history major, is applying for a job as a legal assistant. Although she does not have a background in law, she hopes to land the job because of the |
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Definition
|
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Term
| The equilibrium wage is high for doctors because the |
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Definition
| Supply of doctors is relatively low and the demand is relatively high |
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Term
| You live in a community with many teenagers, and you work during the summer bagging groceries for a low hourly wage. How might living in a community with fewer teenagers looking for grocery bagging jobs affect your hourly wage? |
|
Definition
| Your wages would probably be higher because demand for baggers would be higher |
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Term
| What helps to explain why carpenters usually earn more than dishwashers? |
|
Definition
| A greater supply of carpenters than dishwashers |
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Term
| Labor unions arose largely in response to the |
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Definition
| Dangerous working conditions and long hours of factory jobs in the 1800s |
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Term
| Your cousin tells you that his tracking company has resorted to arbitration with the trucker’s union. This means that |
|
Definition
| A neutral third party is reviewing the dispute and will impose a legally binding decision |
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Term
| In your community there are enough lawncare workers to fill all the lawncare jobs available. There are also no unemployed lawncare workers. You can assume that the wage paid to lawncare workers is |
|
Definition
|
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Term
|
Definition
| Percentage of a franchise’s earnings paid to the parent company |
|
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Term
| What is a disadvantage of a sole proprietorship? |
|
Definition
|
|
Term
| What are organizations that are in the business of benefiting society and operating like a business called? |
|
Definition
|
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Term
| You are part-owner of NewBrands coporation because you |
|
Definition
|
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Term
| Every day on your way to basketball practice you wave to Mr. Martin, who owns the neighborhood flower stand. Mr. Martin’s store is probably a |
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Definition
|
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Term
| According to economic theory, what happens to job opportunities in low paying jobs when the minimum wage goes up? |
|
Definition
| The quantity of labor demanded goes down |
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Term
| In inflation-adjusted dollars, how have average wages in the United States changed in the last 20 years? |
|
Definition
| wages have varied every few years |
|
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Term
| When did labor unions begin to gain some legal rights in the Unites States? |
|
Definition
|
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Term
| Mark is switching from his job as a data entry clerk in an office to a job in a steel mill. One reason his wages will increase significantly in his new job is that |
|
Definition
| It is more dangerous to work in a steel mill than in an office |
|
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Term
| Define sole proprietorship. |
|
Definition
| A business owned and managed by a single individual |
|
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Term
|
Definition
| A legal entity owned by individual stockholders |
|
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Term
|
Definition
| A certificate issued by a corporation promising to repay a loan with interest to that buyer |
|
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Term
|
Definition
| The legally bound obligation to pay debts |
|
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Term
| Define business licenses. |
|
Definition
| Authorization to start a business issued by the local government |
|
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Term
|
Definition
| Regulation in a city or town that designates separate areas for residency and business |
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Term
| Define nonprofit organizations. |
|
Definition
| An institution that functions like a business but does not operate in order to generate profits |
|
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Term
| Define general partnership. |
|
Definition
| A business in which the owners share equally in both responsibility and liability |
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Term
| Define right-to-work law. |
|
Definition
| A measure that bans mandatory union membership |
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Term
|
Definition
| The wage rate that gives neither an excess supply of workers nor an excess demand for workers |
|
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Term
| Define semiskilled labor. |
|
Definition
| Labor that requires minimal specialized skills and education |
|
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Term
|
Definition
| The theory that education increases productivity and result in higher wages |
|
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Term
|
Definition
| An organization of workers that tries to improve working conditions , wages, and benefits for its members |
|
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Term
|
Definition
| An organized work stoppage intended to force an employer to address union demands |
|
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Term
|
Definition
| Workers who require specialized training and skills |
|
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Term
| Define contingent employment. |
|
Definition
| Temporary or part-time employment |
|
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Term
|
Definition
| The practice of negotiating labor contract that keep unnecessary workers on a company’s payroll |
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Term
| T/F: The Federal Reserve System is overseen by a seven member board of governors. |
|
Definition
|
|
Term
| T/F: About 70% or all United States banks belong to the Federal Reserve. |
|
Definition
|
|
Term
| T/F: Monetarism is the belief that the money supply is the most important factor in macroeconomic performance |
|
Definition
|
|
Term
| The federal budget is put together by |
|
Definition
|
|
Term
| An example of expansionary fiscal policy would be |
|
Definition
|
|
Term
| List 3 reasons for why it is difficult to put balanced fiscal policy into practice. |
|
Definition
a.Political pressures for reelection
b.Difficulty of predicting future economic performance
c.Difficulty of coordinating the needs of many different agencies |
|
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Term
| List 3 well-known classical economists. |
|
Definition
a.Adam smith
b.David Ricardo
c.Thomas Malthus |
|
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Term
| When revenues exceed expenditures there is |
|
Definition
|
|
Term
| Keynesian economics failed to deal successfully with |
|
Definition
| high inflation during the 1970's |
|
|
Term
| An example of contractionary fiscal policy would be |
|
Definition
| decreasing government spending |
|
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Term
| The purpose of expansionary fiscal policy is to |
|
Definition
|
|
Term
| List 3 characteristics of classical economics |
|
Definition
a. A free market economy
b. The law of supply and demand
c. The idea of achieving market equilibrium |
|
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Term
| Supporters of supply-side economics believe that |
|
Definition
| Taxes have a strong negative influence on economic output |
|
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Term
| What is a fundamental part of Keynesian economics? |
|
Definition
| The government can use deficit spending to increase aggregate demand and pull the economy out of debt |
|
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Term
| What is a fundamental part of supply-side economics? |
|
Definition
| the government should reduce taxes to promote economic growth by increasing aggregate supply |
|
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Term
| The Laffer curve predicts the effects of changes in the tax rate on |
|
Definition
|
|
Term
| What is an example of a contractionary fiscal policy? |
|
Definition
| The president and congress pass a new two-cent-per-gallon gasoline tax |
|
|
Term
| What makes increased government spending an effective tool for increasing demand? |
|
Definition
|
|
Term
| How did the great depression relate to the school of classical economics? |
|
Definition
| the great depression appeared to disprove the classical theory that demand and supply could return to a healthy equilibrium through market forces alone |
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Term
| What statement describes the federal government’s fiscal policies in the 1980’s? |
|
Definition
| Income tax rates were reduced but spending increased |
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Term
What is an example of state spending?
a. The state police who stopped to assist you when you had a flat tire
b. The state campground where your family vacations
c. State water quality inspections
d. all of the above |
|
Definition
|
|
Term
| What do taxes collected under the Federal Insurance Contribution Act (FICA) fund? |
|
Definition
| Social Security and Medicare |
|
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Term
| Who generally bears most of a sales tax when the demand for the good taxed is inelastic? |
|
Definition
|
|
Term
| What do Social Security taxes pay for? |
|
Definition
| Benefits to older citizens, surviving family members of wage earners, and people with certain disabilities |
|
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Term
| What is one reason the federal government collects income taxes as a person earns? |
|
Definition
| So that the government can pay bills as they come due |
|
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Term
| What is the major source of tax revenue for local governments? |
|
Definition
|
|
Term
| List 3 constitutional limits on the power to tax |
|
Definition
a. Tax money must not go to individual interests
b. Federal taxes must be the same in every state
c. Imports must not be taxes |
|
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Term
| Your department store receipt says that you paid a 5% sales tax on sports equipment. This sales tax is an example of a |
|
Definition
|
|
Term
| What is an example of discretionary spending? |
|
Definition
|
|
Term
| When you drive away from the gas pump. What type of tax have you paid? |
|
Definition
|
|
Term
| The federal government spends the largest amount of its budget on Social Security, which is an example of |
|
Definition
|
|
Term
| How many Federal Reserve banks are in the Federal Reserve System? |
|
Definition
|
|
Term
| What is the relationship between interest rates and demand for money? |
|
Definition
| As interest rates decrease, demand for money increases |
|
|
Term
| What does “lender of last resort” mean with respect to the Federal Reserve? |
|
Definition
| It will lend money to a bank in a financial emergency |
|
|
Term
| What type of policy does the Federal Reserve use to counteract an expansion that is causing high interest rates? |
|
Definition
|
|
Term
| What is one way the Federal Reserve Bank serves the government? |
|
Definition
| selling government securities |
|
|
Term
| What type of policy does the Fed use to counteract a contraction? |
|
Definition
|
|
Term
| Which of following instruments is not used by the Federal Reserve to change the money supply? |
|
Definition
|
|
Term
| What is an example of inside lag in monetary policy? |
|
Definition
| Members of the Board of Governors disagree on the state of the economy and refuse to lower the discount rate until several months after a recession has begun |
|
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Term
| Define productive capacity. |
|
Definition
| The maximum output that an economy can sustain over a period of time |
|
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Term
|
Definition
| A written document indicating the amount of money the government expects to receive for a certain year and authorizing the amount of money the government can spend that year |
|
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Term
| Define multiplier effect. |
|
Definition
| The idea that every one dollar change in fiscal policy creates a greater than one dollar change in the national income |
|
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Term
|
Definition
| Federal government’s use of taxing and spending to keep the economy stable |
|
|
Term
|
Definition
| A type of short-term bond that must be repaid within a year or less |
|
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Term
|
Definition
| A tax on the total value of the money and property of a person who has died |
|
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Term
|
Definition
| A tax for which the percentage of income paid in taxes remains the same for all income levels |
|
|
Term
| Define individual income tax. |
|
Definition
| A tax on the amount of money a person earns |
|
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Term
|
Definition
| A tax for which the percentage of income paid in taxes decreases as income increases |
|
|
Term
| Define corporate income tax |
|
Definition
| A tax on the value of a company’s profits |
|
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Term
|
Definition
| Taking tax payments out of an employee’s pay before he or she receives it |
|
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Term
|
Definition
| Variable amounts that you can subtract from your gross income |
|
|
Term
| Define incidence of a tax. |
|
Definition
| the final burden of a tax |
|
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Term
|
Definition
| physical possessions such as land and buildings |
|
|
Term
|
Definition
| the process by which money is put into circulation |
|
|
Term
|
Definition
| delay in implementing monetary policy |
|
|
Term
|
Definition
| the time it takes for monetary policy to have an effect |
|
|
Term
| Define bank holding company |
|
Definition
| a company that owns more than one bank |
|
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Term
|
Definition
| the actions of the federal reserve takes to influence the level of real GDP and rate of inflation in the economy |
|
|
Term
|
Definition
| rate the federal reserve charges for emergency loans to banks |
|
|
Term
| define federal advisory council (FAC) |
|
Definition
| the research arm of the federal reserve |
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