Econ- Unit 8

A purpose of government regulation in a mixed-market economy is to protect property rights. corporate rights. investor rights. states' rights.

The Food and Drug Administration sets standards for advertising. product labeling. the environment. traffic safety.

A regulatory agency that protects workers is OSHA. EPA. FDA. SEC.

Which explains why government regulation is necessary in a mixed-market economy? Government regulation protects constitutional rights, safety, and fairness. Government regulation protects property rights, safety, and profits. Government regulation protects constitutional rights, profits, and fairness. Government regulation protects property rights, safety, and business owners

Which are duties of OSHA? Check all that apply. investigating worker complaints inspecting imported food inspecting businesses labeling products protecting the environment

Regulatory agencies such as the OCC and the FDIC add _________ to the banking system.

Which is a function of regulatory agencies? encouraging business compliance creating legislation for businesses encouraging negative externalities creating new business opportunities

The most efficient way to ensure that producers are responsible for products is through advertising. legislation. labeling. compliance.

Which regulatory agencies provide general oversight for the banking industry? the Fed and the FDIC the Fed and OSHA the FDIC and the EPA the FDIC and the FDA

Milton Friedman led a new economic school of thought called laissez faire. monetarism. price signaling. the invisible hand.

Milton Friedman argued that consumers are more likely to alter their behavior based on changes in the unemployment rate. short-term changes in the economy. long-term changes in the economy. changes in the inflation rate.

Classical economics played an important role in helping the United States establish ________________

Friedrich Hayek believed that behaviors could be easily predicted. individuals could not influence the economy. the economy is simply explained through behaviors. the economy is too complicated to apply aggregates.

Monetarism plays a role in economic growth by expanding government intervention. influencing the supply of goods. expanding government spending. influencing the supply of money.

Why did Friedrich Hayek call expansionary spending dangerous? He felt it could lower the money supply and cause deflation. He felt it could lead to inflation and poor decisions by consumers. He felt it could lead to deflation and poor decisions by consumers. He felt it could lower available credit and cause a drop in prices

Expansionary monetary policy is used when a government increases its money supply to boost the economy. decreases its money supply to slow the economy. increases its money supply to speed business expansion. decreases its money supply to curb business expansion.

According to Milton Friedman, __________ policy is the best way to influence the economy's aggregate demand.

Which best describes the idea behind the "invisible hand"? Producers decide what to make for consumers, which guides the economy. Producers and consumers work together, which guides the economy. Government sets policy for producers and consumers, which guides the economy. Consumers decide what they need and want to buy, which guides the economy

Both newspaper journalists and postal workers have been negatively affected by the popularity of electronic communication and the Internet. declining literacy rates and lack of interest in reading. government budget cuts that led to fewer jobs in these fields. competition with cheaper labor performed by overseas workers.

In the 1870s, __________ began to investigate factory conditions.

What event had an enormous effect on US workplace safety? a new minimum wage the first labor union a worker strike a deadly factory fire

What was the status of US workplace safety laws in 1900? A few states had tried to pass safety laws, but they had no public support. Most states had passed some safety laws, but enforcement varied. Most states opposed safety laws, but workers began to demand them. All states had safety laws, but no one bothered to enforce them.

In the year 2013, which of these fields has the largest percentage of workers? entertainment and tourism construction industry education and health care manufacturing industry

What is the definition of collective bargaining? ongoing salary negotiations between an employee and a factory owner an agreement among a group of factory owners to raise worker wages a written set of guidelines about legal and illegal workplace conditions labor union and employer negotiations about wages and other issues

What is one benefit for US workers who have a college degree rather than a high school diploma? More than 80 percent of jobs require a college degree. Those with a college degree report higher job satisfaction. Most workers with a college degree are immune to layoffs. Those with a college degree earn nearly twice as much as those without college

The job outlook for physical therapists is weak to very poor. depends on the economy. will remain stable. will improve over time.

If union contracts raise wages above competitive levels, what might be one negative outcome? Industries will raise salaries for top-level workers but not entry-level workers. Companies will move overseas to escape unions and hire cheaper labor. Inexperienced workers will lose their jobs to more experienced workers. Employees will be content with their status and thus less likely to join unions.

Which statements correctly describe the FAFSA? Check all that apply. It can only be completed in person or through the mail. It requires students to provide their financial information. It gives students access to money from the government. It helps determine whether a student needs financial aid. It helps predict how much a student will make in the future.

Which statement best explains a grant? A grant is federal money awarded to a student. A grant is aid given to a student by an institution. A grant is money borrowed by a student to pay for an education. A grant is the price of attending classes at a school.

Which interest could best help someone become an athletic trainer? enjoying working with aircraft understanding sports injuries wanting to manage workers enjoying working with food

Which statement best defines tuition? Tuition is federal money awarded to a student. Tuition is aid given to a student by an institution. Tuition is money borrowed to pay for an education. Tuition is the price of attending classes at a school.

How is a student loan different from a scholarship? A student loan must be paid back, but a scholarship is not paid back. A scholarship must be paid back, but a student loan is not paid back. A student loan is a form of financial aid, but a scholarship is not. A scholarship is a form of financial aid, but a student loan is not.

Student-specific scholarships are awarded to students who have impressive athletic accomplishments. have impressive academic achievements. demonstrates a specific skill are members of a certain group.

At an educational institution, the cost of room and board includes housing and meals. health and dental care. textbooks and supplies. tuition and class fees.

Besides the cost of an education, what additional expenses must students pay? Check all that apply. housing meals supplies textbooks tuition

Which describes the process of how a business incorporates? The business must gain government permission and issue a stock sale, followed by a shareholder vote. The business must issue a stock sale and take a shareholder vote, followed by government permission. The business must take a shareholder vote and gain government permission, followed by a stock sale. The business must gain government permission, followed by writing a charter and issuing a stock sale

Which are examples of sole proprietorships? Check all that apply. law practices medical offices independent workers franchise restaurants tax preparers freelance writers

How do corporations raise money and resources to expand? They request a bank loan. They save business profits. They cash in dividends. They agree to sell stocks

What happens to earnings in a cooperative? They are used to pay middlemen for services. They are shared with member owners. They are used to buy more stock for members. They are shared with customers through dividends.

A disadvantage of corporations is that shareholders have to pay _________ on profits

The primary responsibility of shareholders is to run the business by electing a board of directors, who then hire the company's leaders. run the business by electing a board of directors and hiring a president and other leaders. make business decisions on the advice of a board of directors, a president, and other leaders. make business decisions on the advice of a board of directors, who follow the expertise of leaders.

Which document determines the number of shares a company can sell? a stock prospectus an annual bill of rights a corporate charter an annual report

Entrepreneurs who want to open a franchise buys the rights from the parent company and creates his or her own rules. buy the rights from the parent company and invest in a location approved by the parent company. invest in a location and create a business model for the franchise. invest in a location and develop a trademark for the franchise.

A disadvantage of forming a partnership is that owners can find it tougher to start and stop a business. can find it more difficult to get a bank loan. are only responsible for their own finances. are fully responsible for their partners' losses

Which best describes the difference between sole proprietorships and partnerships? Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities. Sole proprietors share responsibilities, while partners are responsible for only a portion of the business. Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability. Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.

What is a main reason why entrepreneurs experience daily stress? They have considerable responsibility. They need to spend time training employees. They need to have sufficient income to pay loans. They have to contribute both to the market and society

According to the article by Brooks, successful entrepreneurs are most interested in job security. financial gain. personal fulfillment. a flexible working environment.

What led to Henry Ford's success as an entrepreneur? His personal wealth. His innovative production methods. His commitment to improving labor laws. His desire to pay high wages.

According to Brooks' article, what was the main effect of entrepreneurship in China? Poverty noticeably declined. Foreign investment declined. New products were invented. Product exports exceeded imports.

What is one purpose of writing a business plan before entering the market? to prove that the new company will be successful to show that the enterprise is realistically based to have a useful tool when applying for funding to differentiate the new company from the competition

An entrepreneur must accept being accountable for the failure of the company because the entrepreneur is part of the management team. responsible for organizing the business. expected to contribute positively to society. expected to dedicate the most hours to the business.

Because many successful business owners fail on their first attempts, the reader should assume that they learned from their mistakes. their business plans were incomplete. their products or services were unneeded. they were unwilling to take financial responsibility.

What must an entrepreneur assume when starting a business? that the correct location guarantees success that every product has a customer who wants it that clever market strategies may still fail to sell a product that raising funds is the most difficult step in starting a business

How are Bill Gates and Henry Ford similar? Check all that apply. They both streamlined factory production. They both became wealthy and successful. They both helped better the lifestyles of others. They both developed products that filled a human need or needs. They both founded a company when they were very young.

Which statement explains a way how the Securities and Exchange Commission upholds fair business practices? The SEC makes sure that banks follow federal laws. The SEC tries to limit risk in the financial system. The SEC generally oversees banking practices. The SEC generally oversees financial advisers.

Labor unions were certain to advocate for the best interests of workers because the government shut down factories that did not improve work conditions. the top factories were run by owners who wanted to retain their workers. the government required all labor unions to promote workplace reform. the labor unions were created by workers and made up of workers.

Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws? the SEC the FDA OSHA the FDIC

A business owner would most likely create a cooperative instead of buying a franchise because cooperatives give majority owners the most control, while franchises make decisions with a parent company. cooperatives make it easy to accumulate supplies, while franchises come with supplier relationships already in place. cooperatives are well financed by members, while franchises must raise large sums of money to launch a business. cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company.

The development of many new businesses helps limit unemployment. taxation. revenue. risk.

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy? Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy. Friedman said that fiscal policy should be used to influence aggregate demand, while Keynes believed the best approach was monetary policy. Keynes believed in little government intervention in the economy, while Friedman said government should play an active role. Keynes believed the economy was too complicated to think of aggregates, while Friedman said higher aggregate demand could solve issues.

What circumstances during the early days of industrialization led to a need for reform? Check all that apply. Factory equipment was dangerous to operate. There were too few capable workers to fill positions. There was little government regulation of workplaces. A typical work shift might be twelve to sixteen hours long. It was very expensive to keep factories running

Articles of partnership establish how businesses can raise capital. what business taxes are paid. how profits and losses are divided. what is included in a charter

To reduce pollution, the _________ legislates and enforces regulations that protect the air, water, and land.

Many classical economists such as Adam Smith believed that government should intervene often in the economy. intervene little in the economy. always intervene in the economy. never intervene in the economy.

Successful entrepreneurs contribute to the economy by becoming wealthy. expanding markets. encouraging free trade. creating business strategies.