__________are items used in the creation of other goods. factory machinary, trucks, etc.	1
Answer:	Durable Goods Capital Goods Non Durable Goods Consumer Goods

_______is the fundemental economic problem facing ALL societies. Essentially it is how to satisfy unlimited wants with limited resources.	2
Answer:	Scarcity Needs Wants Factors of Production/Resources

____is known as the capacity to be useful.	3
Answer:	Wealth Productivity Utility Paradox of value

The sum collection of those economic products that are tangible, scarce and useful. This is known as ___________.	4
Answer:	Wealth Productivity Utility Value

In a _____________the main decision maker is the government. No person may independently decide to open and run any kind of business. The government decides what goods and services are to be produced.	5
Answer:	Market Economic System Command Economic System Traditional Economic System None of the above

If the government owns and operates almost all of the nation's means of production, then that nation's economic system is called _________.	6
Answer:	socialism capitalism communism free enterprise

Consumers are free to spend their money for Product X or for Product Y. If they prefer Y over X, then the company making X may lose money, go out of business, or decide to manufacture something else (perhaps Product Z). Thus, how consumers choose to spend their dollars causes business firms of all kinds to produce certain goods and services and not others. This is known as_________.	77
Answer:	Competition Consumer Sovereignty Freedom to Choose Our Businesses Profit Motive

The more units one buys the less eager one is to buy more. This is known as Marginal utility.	8
Answer:	True False

_______is the change in the amount of a product demanded regardless of price.	9
Answer:	Changes in demand Changes in the Quantity Demanded Law of Supply and Demand None of the above

__________is the study of the different parts of the economy.	10
Answer:	Macro economics Micro economics Economics None of the above

The _________ issued a recall of asbestos-insulated hair dryers, put an end to the use of benzene in paint removers, banned the use of Tris, cancer-causing flame retardant in children's clothing-and required that slats on baby cribs be set closer together to prevent strangulation.	11
Answer:	Occupational Safety and Health Administration Food and Drug Administration Consumer Product Safety Commission Federal Power Commission None of the above

There are government agencies not only to protect our health, but to protect our pocketbooks. ____________ tries to prevent deceptive advertising. These are called Truth in Advertising laws. It has made producers of aspirin pills, diet breads, toothpastes, cigarettes, and numerous other products either prove their claims or change their advertisements.	12
Answer:	The Federal Trade Commission Occupational Safety and Health Administration Consumer Product Safety Commission Food and Drug Administration

_________includes buildings, machinery and equipment.	13
Answer:	Physical Capital Human Capital Neither

By being a separate legal entity a corporation can sue and be sued. This is known as a____________.	14
Answer:	Partnership Sole Proprietorship Corporation None of the above

:15	Limited liability means the owner may have to sell some or all of his personal possessions to help pay off the company's debts.
Answer:	True False

:16	Each partner has assumed a different element of control, investment and risk. The same is true for reward. Every partnership draws up a contract that dictates elements of control and reward. This is known as a_________.
Answer:	Limited Partnership General Partnership Silent Partnerships None of the above

Limited stock issues that have no voting share. These are known as common stocks.	17
Answer:	True False

Each partner is equal in stature and risk. While different partners may have invested different amounts each has accepted equal risk. Reward, or profits are distributed equally amongst the partners. This is known as a___________.	18
Answer:	Limited Partnership Silent Partnership General Partnership None of the above

____________are corporations that have purchased competing companies in an attempt to eliminate the competition and gain market share. It would be like IBM purchasing Compaq, Dell and Gateway. The FTC (Federal Trade Commission) watches this very carefully to ensure that anti trust laws are not violated.	19
Answer:	Horizontal Corporations Conglomerates Vertical Corporations Multinationals

___________are corporations that have purchased the component businesses that make their product. For example, if Apple Computers bought Intel (the chip manufacturer), a plastics company (for the cases) a shipping company, a CD Rom maker, etc, they would be limiting their costs by purchasing the companies that they used to purchase component products from.	20
Answer:	Conglomerates Vertical Corporations Multinationals Horizontal Corporations

______is a nonprofit association that buys bulk amounts of consumer goods so that its members can purchase at prices below those charges by regular businesses.	21
Answer:	Service Cooperative Producer Cooperative Consumer Cooperative Professional Association

__________is not free from competition. If a business begins to make a great deal of money, competitors may come along in order to "share in the wealth". Also too, if a business keeps its prices too high, another business of the same type may come along with lower prices in order to elicit competition.	22
Answer:	Technological monopoly Natural Monopoly Government Monopoly Geographic Monopoly

______________ are really special rights given to those who invent a new product or create some type of work. By provision of the Constitution, the United States government is allowed to grant patents to inventors guaranteeing them the right to manufacture, use, or sell any new improvement they have made.	23
Answer:	Government Monopoly Technological monopoly Geographic Monopoly Natural Monopoly

___________is a market scenario that includes a large number of autonomous and knowledgeable buyers and sellers of an identical product. Yet none of which are capable of influencing the price.	24
Answer:	Monopolistic Competition Pure Competition non price competition None of the above

Resources are not free to move from one industry to another. This is known as _________.	25
Answer:	Public Goods Market Failures resource immobility None of the above

The___________made it illegal to create, or attempt to create, a monopoly. By declaring any combinations that were a "conspiracy in restraint of trade" illegal. This law was used by the courts and corporate lawyers to grant injunctions against union organization.	26
Answer:	Sherman Antitrust Act Clayton Antitrust Act Interstate Commerce Commission Act Federal Trade Commission Act Robinson - Patman Act

The______was the first federal law regulating the abuse of monopoly power. Passed after "Granger" laws enacted by rural states were declared unconstitutional. Banned certain unfair business practices in the railroad industry.	27
Answer:	Sherman Antitrust Act Interstate Commerce Commission Act Federal Trade Commission Act Robinson - Patman Act

THe_________sought to prevent the creation of monopolies by defining specific illegal practices such as trusts and interlocking directorates.	28
Answer:	Sherman Antitrust Act Interstate Commerce Commission Act Clayton Antitrust Act Celler - Kefauver Act

Question: 29	Public goods are economic products that are consumed collectively, like highways, sanitation, schools, national defense, police and fire protection.
Answer:	True False

Question: 30	Fed and State Governments make payments to lower levels of government. These are known as_________.
Answer:	Grants in Aid Subsidies and Incentives Transfer Payments Direct Purchase

Question: 31	Given by government, raised by taxes, to assist individuals who give the government nothing in return. This is known as_______.
Answer:	Subsidies and Incentives Grants in Aid Transfer Payments Transfer Payments

Designed by President Clinton, this Act was an attempt to trim approximately $500 billion from the deficit over a five-year period. This was known as the ___________.	32
Answer:	Omnibus Budget Reconciliation Act of 1993 Budget Enforcement Act (BEA) of 1990 Omnibus Budget Reconciliation Act of 1990 Budget Enforcement Act (BEA) of 1993
The_________was a set of federal deficit targets for Congress and the President to meet over a six year span of time. The federal deficit was to decrease each year until it reached zero in 1991.	33
Answer:	Budget Enforcement Act (BEA) of 1990 Balanced Budget and Emergency Deficit Control Act of 1985 Omnibus Budget Reconciliation Act of 1993 Omnibus Budget Reconciliation Act of 1985

_____were jobs associated with women like nursing, secretarial, etc. This being a rather sexist term, is no longer used.	34
Answer:	White Collar Blue Collar Pink Collar None of the above

______workers were manual laborers.	35
Answer:	Blue Collar White Collar Pink Collar None of the above

TheKnights of Labor captured the public imagination. Formed in 1869 by __________.	36
Answer:	Samuel Gompers Uriah Stephens Terrance Powdery None of the above

TheAmerican Federation of Labor was founded by ___________.	37
Answer:	Terrance Powdery Uriah Stephens Samuel Gompers None of the above

In November 1935, ____________announced the creation of the CIO, the Committee for Industrial Organization, composed of about a dozen leaders of AFL unions, to carry on the effort for industrial unionism.	38
Answer:	Eugene V. Debs Terrance Powdery John L. Lewis Uriah Stephens

:39	The Social Security Act passed in ___________.
Answer:	1930 1935 1937 1938

The 2002 Farm Bill was the first in history to contain a separate energy title, reflecting a fundamental policy linking of agriculture to energy.	40
Answer:	True False

A___________________imposes the same percentage of taxation on everyone, regardless of income. If the percentage tax rate is constant, the average tax rate is constant, regardless of income. This means that if a person's income goes up, the percentage of total income paid in taxes doesn't change.	41
Answer:	progressive tax proportional tax regressive tax None of the above

A_______ imposes a higher percentage rate of taxation on those with higher incomes.	42
Answer:	progressive tax proportional tax regressive tax None of the above

A_________imposes a higher percentage rate of taxation on low incomes than on high incomes.	43
Answer:	progressive tax proportional tax regressive tax None of the above

The value-added tax (VAT) is a tax imposed on business at all levels of production, and based on the increase in value, provided by each level.	44
Answer:	True False

The most important taxes on consumption are ____________.	45
Answer:	sales tax payroll tax excise tax property tax Both A and C Both A and D

The Federal Government operates on a fiscal year that begins on __________.	46
Answer:	September 1 October 1 September 30 November 1

:47	______________ is directly related to swings in the business cycle. During a recession many people put off buying certain durable goods resulting in durable goods industries laying off workers until the economy recovers.
Answer:	Seasonal unemployment Cyclical unemployment Structural unemployment Frictional unemployment

_________states that labor groups cause inflation. If a strong union wins a large wage contract, it forces producers to raise their prices in order to compensate for the increase in salaries they have to pay.	48
Answer:	The Federal Reserve System Demand-pull theory Cost-push theory None of the above

_________are areas where companies can locate free of certain local, state, and federal tax laws and operating restrictions.	49
Answer:	General Assistance Negative income tax Social service programs Enterprise zones

___________ occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills. Sometimes consumer tastes change and certain goods and services are no longer required.	50
Answer:	Frictional unemployment Structural unemployment Cyclical unemployment Technological unemployment