Economy

Question 1

If competition decreases in a certain industry
a. A company that is in that industry may have and exert more economic power.
b. it would not matter because competition has very little affect in a market economy.
c. Prices will most likely be lower in that industry
d. Resources will be allocated more efficiently
Question 2

The Sherman Anti-Trust Act
a. Created new policies to ensure that workers' compensation was given to all workers
b. Gave monopolies a legal right to exist and grow
c. Was a governmental attempt to promote and encourage competition.
you rule!
d. Gave all unions money to pay their members

Question 3

One reason the government is involved in the U.S. economy is to
a. discourage competition
b. encourage monopolies
c. promote the development of negative externalities
d. regulate industries in which a monopoly is in the public interest

Question 4

Under perfect competition
a. Market equilibrium sets the price of goods and services
b. The seller tends to spend much effort in advertising its product because of product differentiation.
c. The buyers are usually uninformed
d. The government determines how much of a good to produce.

Question 5

The Clayton-Anti Trust Act
a. Was never passed
b. Helped monopolists grow wealthier
c. Outlawed price discrimination
d. Was passed to lower the taxes on the most wealthy Americans

Question 6

Regarding what your textbook and resources state about minimum wage, which of the following is FALSE?
a. Minimum wage reached its peak in 1988 if it is being determined as a percentage of the average manufacturing wage.
b. When the figures are adjusted for inflation, minimum wage had its highest purchasing power in 1968.
c. In 1939, the U.S. saw its first minimum wage set at $0.25 and hour.
d. The Fair Labor Standards Act provided for the minimum wage.

Question 7

Which of the following is the term that describes the invisible barrier to women and minorities' ability to advance in the corporate structure?
a. Federal non-acceptance
b. The glass ceiling.
c. The price hindrance theory
d. Set-aside contracts

Question 8

Study the graphs. Compared to janitors, the graph for surgeons shows
a. low demand and high supply
b. high demand and high supply
c. high demand and low supply
you rule!
d. low demand and low supply

Question 9

Based on the illustration, workers in Texas
a. must join their company's union.
b. may not be locked out of their jobs by management.
c. are not required to join their company's union.
d. may not be forced to participate in their union's strikes.

Question 10

The Fair Labor Standards Act
a. made it illegal to prosecute unions under the Sherman Antitrust Act.
b. established the right of unions to collective bargaining.
c. prevented courts from issuing injunctions against unions engaged in peaceful strikes.
d. established a federal minimum wage.

Question 11

The first federal legislation to exempt unions from the antitrust laws was the
a. Sherman Antitrust Act.
b. Interstate Commerce Act.
c. Clayton Antitrust Act.
d. Taft-Hartley Act.

Question 12

The National Labor Relations Act
a. made it illegal to prosecute unions under the Sherman Antitrust Act.
b. established a federal minimum wage.
c. prevented courts from issuing injunctions against unions engaged in peaceful strikes.
d. established the right of unions to collective bargaining.

Question 13

The theory that wages are based on the supply and demand for a workers skills is the
a. market theory of wage determination.
b. seniority theory.
c. theory of negotiated wages.
d. signaling theory.

Question 14

When labor and management ask a third party to collect information about a dispute and present nonbinding recommendations, they are using
a. collective bargaining.
b. mediation.
c. fact-finding.
d. arbitration.

Question 15

Which of the following prohibits wage and salary discrimination for jobs that require equivalent skills and responsibilities?
a. Taft-Hartley Act
b. Equal Pay Act
c. Fair Labor Standards Act
d. Sherman Antitrust Act

Question 16

Which of the following statements about the minimum wage is accurate?
a. The minimum wage remained the same from 1998 through 2006.
b. When adjusted for inflation, the minimum wage had the most purchasing power in 1988.
c. When expressed as a percentage of the average manufacturing wage, the minimum wage reached its peak in 1988.
d. The first minimum wage was set at $0.50/hour in 1950.

Question 17

Workers who have the skills to operate machines and who require a minimum amount of training are
a. skilled labor.
b. semiskilled labor.
c. unskilled labor.
d. professional labor.

Question 18

Workers with knowledge-based education and managerial skills are
a. professional labor.
b. unskilled labor.
c. skilled labor.
d. semiskilled labor.

Question 19

Perfect competition is characterized by
a. a large number of buyers and sellers.
b. diverse products.
c. uninformed buyers and sellers.
d. sellers acting together to set prices.

Question 20

In the graph, suppose the firm increases production to 148 units. This will result in
** Hint: Profit maximization occurs when marginal cost equal marginal return.
a. a decrease in marginal revenue.
b. an increase in total profit.
c. a decrease in total profit.
d. an increase in marginal revenue.

Question 21

Which of the following is true regarding how incentives are used in the market place?
a. Because inefficiency can be costly, producers often have the incentive to be as efficient as possible.
b. all of these are true
c. Consumers have the incentive to search through the competition for the best "deal".
d. Producers have the incentive to produce quality goods at a cheaper cost so that they can earn more profit.