Monday, October 10, 2011

Glencoe - Economics - Principles and Practices - Chapters 1 to 10 - True/False

Indicate whether the sentence or statement is true or false.

__T__  1.  Economic growth occurs when a nation's total output of goods and services increases over time.

__T__  2.  In economics, land refers to the natural resources needed for production, such as forests, minerals, and

__T__  3.  Economic products consist of both goods and services that are useful, relatively scarce, and transferable to

__F__  4.  A nation's wealth refers to a worth that can be expressed in dollars and cents.

__F__  5.  The production possibilities frontier can be reached even if certain resources remain idle.

__F__  6.  Voluntary exchange is a characteristic of command economies.

__T__  7.  Preferred stock represents the nonvoting ownership of a corporation.

__F__  8.  One advantage of a corporation is the ease of obtaining a charter.

__T__  9.  Many schools, medical care facilities, and churches operate as nonprofit organizations.

__T__  10.  Labor unions use collective bargaining to negotiate job-related issues with management.

__F__  11.  Sole proprietorships must request a charter from the state in which they are organized.

__T__  12.  People form partnerships because it often improves a business's management and can usually attract capital
more easily than proprietorships.

__F__  13.  Investors in corporations have unlimited liability for the company's debts.

__T__  14.  A professional association tries to improve the working conditions, skill levels, and public perceptions of the

__F__  15.  The government is a nonprofit organization that plays a direct role in the economy by, for example, regulating
public utilities that would operate with few or no competitors.

__T__  16.  Productivity will decrease if workers are unmotivated.

__F__  17.  When more suppliers enter the market, the market supply will typically decline.

__T__  18.  The theory of production deals with the relationship between the factors of production and the output of
goods and services.

__T__  19.  The production function describes the relationship of changes in output to different amounts of a single input
while other inputs are held constant.

__T__  20.  An increase in output as each new input is added, as in the addition of a worker, describes Stage I of the
stages of production.

__T__  21.  The number of items sold multiplied by the average price of each item yields the total revenue of a business.

__T__  22.  The mix of variable costs and fixed costs that a business faces affects the way the business operates.

__F__  23.  Marginal cost is the change in total revenue when one more unit of output is sold.

__T__  24.  The four important measures of cost are: total cost, fixed cost, variable cost, and marginal cost.

__F__  25.  Economists often use an academic model to help analyze behavior and predict outcomes.

__T__  26.  Market equilibrium is the situation in which the quantity of output supplied is equal to the quantity demanded.

__F__  27.  If the price of an item is too high in a competitive market, a shortage appears until the price goes down.

__F__  28.  A private agency usually approves prices for water and electric utilities.

__T__  29.  “Truth in advertising laws” are designed to prevent market failures caused by inadequate information.

__F__  30.  The Clayton Antitrust Act was the first significant law against monopolies in the United States.

__T__  31.  The government can “internalize an externality” by using the tax system.

__F__  32.  The Sherman Antitrust Act prohibits monopolistic competition.

__T__  33.  When striking workers picket, they parade in front of the employer's business carrying signs about the

__T__  34.  Most Americans favored unions in the 1930s but shifted to favoring management after World War II.

__F__  35.  The agency shop requires that an employee join the union shortly after being hired.

__F__  36.  If an agreement cannot be reached during collective bargaining, workers use the boycott—refusing to work
until their demands are met.

__T__  37.  Historically, unions were considered to be conspiracies against businesses and were prosecuted in the courts.

__F__  38.  During arbitration, a third party makes a non-binding compromise to resolve a dispute between labor and

__T__  39.  The traditional theory of wage determination states that wages are set according to the laws of supply and

__T__  40.  Supply and demand are used to predict the incidence of a tax.

__T__  41.  Taxes on most personal property are seldom collected because of the problem of valuation.

__T__  42.  Distribution of income explains the way in which income is allocated to individuals, families, or other
designated groups.

__T__  43.  When the government produces goods and services, it often competes with producers in the private sector.

__T__  44.  Interstate highway construction programs are examples of grants-in -aid.

__F__  45.  Approximately two -thirds of the federal budget consists of discretionary spending.

__T__  46.  Payments to aged and disabled Americans through the Social Security program make up the largest category
of federal spending.

__T__  47.  Government spending can directly affect both the allocation of resources and the distribution of income.

__F__  48.  The fastest growing category of federal expenditures since 1980 has been defense.

__F__  49.  One of the major concerns about the national debt is that more than 50 percent of it is owed to investors
outside of the United States.

__T__  50.  Consequences of the national debt include the redistribution of income and diminishing incentives to work,
save, and invest

No comments:

Post a Comment