1142 Questions & Blanks

Question 1

When economic activity is growing, both ______ and _____ are increasing

Answer 1

total output

total income

Question 2

Of the ingredients necessary for economic growth, __________ provide personal gain for efficient, dedicated workers; ________ includes money and people’s knowledge and expertise; and ______________ has produced changes in goods and the way that they are produced.

Answer 2

institutional incentives
investment
technological development

Question 3

_______ are not predictors but are only rough estimates of what direction an economy is likely to take.

Answer 3

Representative indicators

Question 4

The Employment Act of 1946 requires the U.S. government to _______________

Answer 4

create full employment
prevent cyclical employment
control structural employment

Question 5

When unemployment sinks below the target rate, ______________ and _______________

Answer 5

demand exceeds supply

inflation accelerates

Question 6

When unemployment rises above the target rate

Answer 6

supply exceeds demand and

a recession occurs

Question 7

The unemployment rate is the percentage of people in the labor force who want to work but cannot find a job.

Answer 7

.

Question 8

when calculating the unemployment rate, disregard those in the armed forces

Answer 8

.

Question 9

Members of a stock exchange meet in one place to deal in securities, but _______ exchange bids and ask prices through the NASDAQ system

Answer 9

OTC brokers

Question 10

NASDAQ can handle stock transactions either through the _______ or over the phone

Answer 10

computer link

Question 11

In a/an _________, a smaller firm is purchased by a larger one, which may not take direct control of its operations

Answer 11

acquisition

Question 12

In a/an ____________, the purchasing firm takes direct control over the purchased firm

Answer 12

takeover

Question 13

Hostile/friendly takeover

Answer 13

.

Question 14

A firm that does not wish to be taken over may use the ___________

Answer 14

poison pill strategy

Question 15

Two unrelated firms might merge to _______

Answer 15

benefit from each other's expertise
diversify
get a good buy
prevent a takeover bid
strengthen their political-economic influence

Question 16

Characteristics of a good manager

Answer 16

integrity
allegiance to the firm and its goals
a desire to serve others

Question 17

Top management- middle management- laborers

corporation pyramid

Answer 17

.

Question 18

The civilian ______ includes adults working for pay or in a family business and those _________

Answer 18

labor force

actively seeking work

Question 19

In a labor market, ______ are the supply, and ______ provide the demand

Answer 19

workers

firms

Question 20

Workers are not paid strictly according to the laws of ______ because economic, social, and political pressures influence the labor market.

Answer 20

supply and demand

Question 21

A desire to participate in _________ may influence one’s job decisions.

Answer 21

nonmarket activities

Question 22

Although one assumes that the _____ the wage the greater the quantity of labor supplied, the upwards sloping curve is not always accurate.

Answer 22

higher

Question 23

1 Timothy 6:6 teaches that ______

Answer 23

Godliness with contentment is great gain

Question 24

______ increases government revenue

Answer 24

reducing taxes

Question 25

Government welfare programs may create a _____

Answer 25

negative incentive effect

Question 26

Government welfare programs require ______ of those who work

Answer 26

higher income taxes

Question 27

Any program that provides assistance based on ______ reduces people's incentive to work

Answer 27

need

Question 28

Demand for labor is a _______ based on demand for a product or service.

Answer 28

derived demand

Question 29

When demand for labor increases, wages ______ and the labor supplied ______

Answer 29

increase | increases

Question 30

Highly paid jobs tend to require more ______

Answer 30

preparation

Question 31

_______ place restrictions on employers, and _______ are organized groups of employees who bargain collectively with their employers

Answer 31

Labor laws | Labor unions

Question 32

Some labor laws have __________ and the free-market economy

Answer 32

restricted the labor market

Question 33

Labor laws dictate the number of hours one may work in one ______, the minimum ____ of workers, the amount of pay for ______ work, and health and safety conditions in the workplace.

Answer 33

day age overtime

Question 34

Other labor laws prevent sexual harassment or forbid ________ based on race, religion, sex, age, disability, or national origin.

Answer 34

discrimination

Question 35

A _________ law forbids union membership as a requirement for continuing one's employment.

Answer 35

right-to-work

Question 36

Unions in the ____ are organized by industry; those in the ____ are organized by trade.

Answer 36

Congress of Industrial Organizations | American Federation of Labor

Question 37

In a _______ union membership is necessary for employment; in a _____ shop, employees must join the union after a certain period of time.

Answer 37

closed | union

Question 38

The _____ Act of 1947 limited union activities,prohibited closed shops, and allowed states to pass right-to-work laws to ban union shops.

Answer 38

Taft-Hartley

Question 39

Because service industries have overtaken manufacturing in economic importance and Because unions have successfully pressured legislators to pass laws that protect workers

Answer 39

Union membership has been decreasing in recent years

Question 40

Additions to a firm's capital stock may be in the form of ____ investment or ______ investment.

Answer 40

plant and equipment | inventory

Question 41

Investment is affected by:

Answer 41

the factors of time depreciation sales potential

Question 42

A firm may finance capital investment projects by ______ from outside sources or by using its own funds

Answer 42

borrowing

Question 43

In either case of financing capital investment projects, the cost of the investment is the _____ or that it loses on its funds

Answer 43

interest the firm must pay

Question 44

When interest rates ______, investment increases.

Answer 44

decrease

Question 45

Only the ________ of an investment and the _____ are considered costs for tax purposes.

Answer 45

opportunity cost | depreciation of the equipment

Question 46

Government encourages _______ by allowing faster depreciation or lower taxes.

Answer 46

increased investment

Question 47

Keynesian economists believe:

Answer 47

that government intervention should control economic fluctuations that society should provide everyone with a job that structural and cyclical unemployment and more common

Question 48

Classical economists believe:

Answer 48

that fluctuations are a natural part of the economy that every individual is responsible for his own employment that almost all unemployment is frictional

Question 49

______ must decrease during an economic downturn, but _______ does not necessarily increase

Answer 49

Income | unemployment

Question 50

The unemployment rate provides a measure of, and indicates _______ in, the economy.

Answer 50

change

Question 51

A firm's _____ includes its plant and equipment and its inventory

Answer 51

capital stock