20. Offshoring is the practice of hiring part-time workers instead of full-time workers. A. true B. false

____ 21. What is gross DOMESTIC product (GDP)? A. the annual income earned by a country's firms and citizens B. the annual income earned by a country's firms and citizens adjusted for inflation C. the total dollar value of all goods and services produced within a country

____ 22. An organized work stoppage to gain a concession from management is A. a strike. B. collective bargaining. C. arbitration.

____ 23. In the United States, the __________ controls the supply of money in circulation. A. Federal Reserve B. Congress C. State Association of Wildcat Banks

____ 24. What is a horizontal merger? A. Firms involved in different stages of production join together. B. A firm gains the ability to control all stages of production. C. Two firms that manufacture the same product join together.

____ 25. A business cycle is a measure of A. minor, daily changes in the stock market and in nominal gross domestic product. B. major changes in real gross domestic product above or below normal levels. C. minor, daily changes in price levels and real gross domestic product.

____ 26. Gross national product (GNP) - depreciation of equipment is the formula for figuring A. disposable personal income. B. gross domestic product (GDP). C. net national product (NNP).

____ 27. As a labor union leader, Samuel Gompers focused on A. having workers sign yellow dog contracts. B. higher wages, shorter hours, and safe workplaces. C. transferring all factors of production to the government.

____ 28. Liability is A. the legal obligation to pay debts. B. the amount of profit a partner gets to keep. C. authorization from a local government to operate a business.

____ 29. In which phase of a business cycle does real GDP stop rising? A. peak B. contraction C. expansion

____ 30. A stock split happens when A. the price of a stock becomes so high that people do not want to buy it. B. preferred stock owners vote to combine shares of stock. C. preferred stock owners protest the payment of dividends to common stock holders.

____ 31. The Civil Rights of 1964 outlawed workplace discrimination based on race or gender. A. true B. false

____ 32. What were major causes of the recession of 2008? A. the gold standard and bank runs B. subprime mortgages and foreclosures on home loans C. bailout and stimulus spending by Presidents Bush and Obama

____ 33. What is a DISADVANTAGE of a sole proprietorship? A. full control B. full receiver of profit C. unlimited personal liability

____ 34. A business franchise is a semi-independent business that pays fees to a parent company and has exclusive right to sell a good or service within a certain area. A. true B. false