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Economics for Intro
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Who actually ownes a corporation
board of directors
chief ececutive officer
A company decides to install more machines and lay off workers. Which economic question is being addressed?
For whom to produce
How to produce
What to produce
Where to produce
If a foreign country can supply us with a proudcut cheaper than we ourselves can make it, it is better to buy from them.
Based on this excerpt from Adam Smiths Wealth of Nations, which of these governemnt actions would adam smith support
entering into free trade agreements
raising taxes on imported goods
passing strict regulations on businesses
increasing wages paid to workers
What is the primary incentive that motivates a manufacturer to sell a product
reputation of the product
making profits on sales
pleasing the government
putting others out of businesses
What are the three main forms of business organization?
corporations, proprietorships, and stockholders
partner proprietorships, corporations, and sole partnerships
Corporation, sole propietorship, partnership
partnerships, corporations, and dividends
There is a country in which the governmnet owns all the industries, businesses and farms. The governemt sets production and wages. The government provides all education childcare, and medical care for all the people. What type of economy does this describe
What is the most basic economic issue for all societies?
Which of these best explains Japan's need for imports?
a golbal scracity of natural resources
An unskilled workforce in Japan
a shortage of natural resources in Japan
a surplus of elecronics in other counties
Limited partners have no ?management responsibility and ?no liability for losses beyond ?their investment
To deal with the problem of unlimited wants and limited resources societies establish which of the following
what is the effect of trade barriers on the economy?
increased variety of goods
higher qulity of goods
price of goods will increase
higher supply of goods
If Great Britian has a comparative advantage over France in the production of cars, which of the following is true?
France should export cars to Britain
Britian and France should not trade
Britain should export cars to France
Neither Britian or France will gain from trade
On supply and demand graph, what is the point called at which quantity demanded equals quantity supplied?
Not for profit businesses include churches hospitals and social services goals do not include making a profit.
How does the process of specialization change an economy?
Increases government control
Improves efficiency of production
Which is true of a sole proprietorship?
Revenue for a sole proprietorship is usually higher than that for a corporation
Sole proprietors share decision making with others
A sole proprietorship is often difficult and complicated to start upt up costs
Profits from a sole proprietorship are only taxed once
In market economy, what is the government's role?
decides what goods are manufactured
owns and operates major industries
encourages competition among businesses
sets prices on goods and services
Which of the following describes a market in which one firm controls thes upply and pricing of a good or service
Which type of business makes a finished product, such as an automobile?
In a market economy, what determines the price and guantity of most goods and services
supply and demand
quality of goods
In economic terms, what is a stock?
a share or part ownership of a compnay
a place where individuals raise money
pieces of paper that represent money
ownership of an entire company
If a government sets a maximum price for a good or service, what does it create?
The shares of ownership of a corporation are called dividends
Jenny has enough money to buy either a CD or to go to a movie with her friends. In economics, what is the choice that Jenny "gives up" called?
In which of the following economic systems is the "factors of production" privately owned?
"Their is no free lunch"
In economic terms,f what does this mean?
All production is designed to reduce scarcity
People only think of others when making choices
Someone must pay for everything
Choices are never based on self-interest
Which form of business is most profelent in the United States
Which form of business accounts for the majority of the countries GDP or Gross Domestic Product
What does unlimited liability mean to the owner of a business?
The corporation is dissolved when the owner dies
The owner has limited credit
The company will fail if the owner does not have all the skills needed to run the business
The owner is responsible for all the company's debts.
In a market economy, when consumers and producers act in their own self-interest, which is most likely to be the overall result
teh marke twill have less variety and fewer products will b emade
the consumer will pay excessively high prices for goods and services
the individuals or businesses will lose money no matter what they sell
the producers are likely to earn a profit making products people want
Which of these is an economic benefit of tariffs on goods imported into the United States?
United States business will attract more imports form other nations
Unites States businesses will have less competition from foreign nations companies
competition among produces in the United States will reamin the same
prices of goods made in the United states will decrease
In an open corporation, stocks are bought and sold on security exchanges and can be bought by anyone
Which of the following best completes the equation
unlimited wants + limited Resources = ????
What happens when the United States trades wheat to Saudi Arabia exchange for crude oil?
The united States and Saudi Arabia both lose
The united Sttes loses and sauid Arabia gains
The United States gains and Saudi Arabia loses
The United States and Saudi Arabia both gain
What is the most likely to happen when consumers want to buy more scooters than the store has available for sale?
price of the scooter will increase
sgores will make a different model
profit on scooter sales will be smaller
manufactrurers will stop making it
Which of the following is a result of the specialization of labor?
The board of directors are appointed by
chief ecective officer
In general, what type of economy does the United States have?
What is the main disadvantage of being a sole proprietor?
High start up costs
A hurricane hit Florida and destroyed half of the orange crop, what would most likely happen to the orange market
price of oranges will fall
demand for oranges will rice
the price of oranges will increase
supply o foranges will increase
Which of these best explains why the United States might place tariffs on import?
to promote trade between teh United States and other countries
to increase the varity of product that are availabe in teh united states
to cause the price of goods made in the Unted Sttes to decrease
to encourage consumers in the United States to buy American products
Assume the government subsidizes the production of a good every year. Which of these would be the most likely result if the government stopped the subsidies?
better wages for workers
better selection of producgts
manufactrurers will stop making it
increase in the price of the products
which of the following is a characteristic of a public good
ability to pay is essential for the use of the good
non-exclusion andd shared consumption
it conveys benefits to only the prurchaser
it is for use of government officals only
Which of these is a goal of the North American Free Trade Agreement (NAFTA) member nations?
provide relief for refugees
forgive common debts
eliminate most tariffs
create a common currency
When a nation imports more than it exports, economist say it has which of the following?
a balance of trade
a national debt
a trade deficiet
a trade surplus
which type of economy produces the highest standard of living for its citizens
In economic terms, what are land, labor, capital and entrepreneurship?
Factors of production
The term "laissez faire" refers to which of the following concepts
limited government controls
A general partnership is a business co-owned by two or more general partners who are liable for everything the business does.
Which of these does the Gross Domestic Product (GDP) represent
the change in the average price of consumer goods and services
the amount of reserve fund sthat banks are requred to hold
the rate of interest rate charged
total value of finished goods and services produced in a year
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