Labor Unions & Junk
What best states the purpose of the lobbying done by labor unions in the United States?
A. To get producers in the U.S. to increase the supply of public goods.
B. To prevent foreign countries from adopting protectionist policies.
C. To get the federal government to pass laws protecting workers.
D. To get consumers around the world to demand more goods and services.
C. To get the federal government to pass laws protecting workers.
What is one of the main advantages of living in a rural area?
A. Low levels of traffic into the city make it easy to commute.
B. Urban renewal cannot take place in rural areas.
C. Zoning laws provide uniformity among the houses.
D. Housing costs less than in any other living area.
D. Housing costs less than in any other living area.
The business cycle goes from boom to recession to ________ and back to boom.
Recovery
Which of the following describes a situation in which there would be decreasing marginal utility?
A. Recycling to preserve natural resources.
B. Buying winter clothing in the middle of winter.
C. Having lunch right after having breakfast.
D. Riding the bus to save money on gas.
C. Having lunch right after having breakfast.
A _______ is both a consumer and producer.
Worker
(The government is also both!)
What best states the effect that globalization has had on workers in the United States?
A. Environmental damage has become more severe.
B. Competition for high-tech jobs is concentrated in North America.
C. Wages have been reduced as a result of outsourcing.
D. Productivity has been diminished.
C. Wages have been reduced as a result of outsourcing.
What best explains why buying is an investment while renting is not?
A. A house can be sold for a profit by the residents when they move out.
B. It's generally more expensive to pay a mortgage than it is to pay rent.
C. Landlords make only a small profit from each rental unit in a building.
D. It's harder to sell a house than it is to find new tenants for a rental unit.
A. A house can be sold for a profit by the residents when they move out.
Which of the following is the best example of an inferior good? A. DVD B. Bus ride C. Hiking boots D. Leather gloves
B. A bus ride.
What is the result when the benefits of a decision are greater than the opportunity cost of that decision?
A. A decrease in marginal utility.
B. A low cost-benefit ratio.
C. An increase in selling price.
D. The optimal use of a resource.
D. The optimal use of a resource.
What describes one effect that immigration has on the labor market?
A. Immigration prevents outsourcing from taking place.
B. Immigration leads to a greater supply of labor.
C. Immigration puts an upward pressure on cost-pull inflation.
D. Immigration keeps the levels of supply and demand from being equal.
B. Immigration leads to a greater supply of labor.
How do workers benefit from joining a union?
A.T hey get greater bargaining power.
B. The gross domestic product grows.
C. Unemployment insurance rates go down.
D. Immigrants are prevented from getting jobs.
A. They get greater bargaining power.
What is one effect of the use of zoning laws in large tracts of land that are given over to suburban developments?
A. The population density in any nearby city or cities steadily decreases.
B. Neighborhoods in the suburbs tend to look the same.
C. Crime and pollution are higher than in cities.
D. Housing prices in the suburbs are lower than in the city.
B. Neighborhoods in the suburbs tend to look the same.
What do online businesses have over brick-and-mortar retail stores?
A. Businesses operating online can rely solely on low-paid unskilled labor.
B. Online businesses can reach customers nearly anywhere in the world.
C. Consumers get instant satisfaction from click-and-buy technology.
D. Large distribution companies offer free shipping to online sellers.
B. Online businesses can reach customers nearly anywhere in the world.
Which of the following describes a situation that would tend to raise the price of goods?
A. Environmental regulations are loosened.
B. Consumers start using less of a good.
C. A new trend raises demand for a good quickly.
D. The wages paid to productive laborers decrease.
C. A new trend raises demand for a good quickly.
What best explains why the level of wages in the U.S. doesn't follow pure free-market principles?
A. Labor is a unique commodity that does not have decreasing marginal utility.
B. Planned economies require labor just as much as free-market economies do.
C. Government regulation requires employers to pay a minimum wage.
D. Workers use their wages to buy the goods and services that they produce.
C. Government regulation requires employers to pay a minimum wage.
What is one result of competition for jobs?
A. Workers have an incentive to work faster and harder.
B. Workers are able to focus on a single task.
C. There's greater diversity in the labor market.
D. Taking time off for education costs more than it benefits.
A. Workers have an incentive to work faster and harder.
Because of the time and expense associated with increasing the supply of housing, the housing supply is ____________.
A. Fungible
B. Inelastic
C. Inferior
D. Marginal
B. Inelastic
Why can large chain stores offer lower prices than small, local businesses?
A. Large chains can buy wholesale goods more cheaply.
B. Large chains are run by a board of directors rather than partners.
C. Large chains are able to supply a surplus of goods.
D. Large chains can afford to operate at a loss.
A. Large chains can buy wholesale goods more cheaply.
What best explains the purpose of a demand curve?
A. To show the relationship between demand and price.
B. To show where supply and demand intersect.
C. To show what factors tend to increase demand.
D. To show how much profit producers make as demand goes up.
A. To show the relationship between demand and price.
What best explains why the level of wages is largely determined by the law of supply and demand?
A. Labor produces a supply of goods and services.
B. Labor is one of the three factors of production.
C. Labor can only be performed by human beings.
D. Labor is a commodity that is sold for a price.
D. Labor is a commodity that is sold for a price.
What two forces lead to greater competition among workers and reductions in wages?
A. Immigration and outsourcing.
B. Specialization and free trade.
C. Taxation and government spending.
D. Demand-pull and cost-push inflation.
A. Immigration and outsourcing.
What has the potential effect of an increase in mortgage interest rates?
A. Capital investment in housing construction becomes more lucrative.
B. Housing prices will go up and down more quickly than usual.
C. Buying houses becomes more popular than renting a place to live.
D. Some people could be priced out of the option to buy a home.
D. Some people could be priced out of the option to buy a home.
What best explains why trade enhances efficiency?
A. Trade prevents the government from using either monetary or fiscal policy.
B. Trade increases competition and gives producers an incentive to minimize waste.
C. Trade gives consumers an incentive to learn more about the rest of the world.
D. Trade eliminates complex distribution networks and lowers transportation costs.
B. Trade increases competition and gives producers an incentive to minimize waste.
Which of the following describes a situation in which a surplus occurs?
A. A cable television company increases its rates.
B. A theater sells fewer tickets than there are available seats.
C. A car company tries to charge too high a price for a new SUV.
D. A clothing company begins producing sweaters before the winter arrives.
B. A theater sells fewer tickets than there are available seats.
Name one thing in the labor market that affects wages.
Productivity
Law of Supply and Demand
International Competition
Globalization
Technology