Question 1(3 points)

To see an increase in their wage rate, a worker must be willing to _____________.

a

relocate

b

go back to school

c

learn a skill

d

all of these

Question 2(3 points)

The combined skills and education of a worker is called _______.

a

talent

b

human capital

c

the collective supply of workers

d

productivity

Question 3(3 points)

An organization comprised of workers who share a similar skill is called _____________.

a

a craft or trade union

b

a closed shop

c

an industrial union

d

an open shop

Question 4(3 points)

Regardless of the industry, worker's wages have a strong correlation to ___________.

a

region of the country

b

an increase in technology

c

productivity

d

a lack of mobility

Question 5(3 points)

The 1886 strike in Chicago against the McCormick Harvesting Company is called _____________.

a

Haymarket Square

b

Triangle Shirtwaist

c

Pullman Strike

d

International Workers of the World

Question 6(3 points)

Recession has shown that workers with a particular characteristic have suffered less loss of income and unemployment than other workers. That characteristic is _____________.

a

competition for work from abroad

b

the lack of a skill

c

economic region

d

education

Question 7(3 points)

The key to being paid more as a worker is/are __________________.

a

education or a skill

b

a willingness to relocate

c

a willingness to work in a dangerous or dirty environment

d

all of these

Question 8(3 points)

The 1894 strike called by Eugene Debs of the American Railway Union is called the ___________.

a

Haymarket Square

b

Triangle Shirtwaist

c

Pullman Strike

d

International Workers of the World

Question 9(3 points)

The concept of collective bargaining is defined as __________.

a

an individual who seeks to improve his/her pay and benefits with his/her employer

b

the give and take necessary to raise the minimum wage

c

an organization of workers who collectively seek to improve wages and working conditions

d

negotiations between businesses and their employees over pay and working conditions

Question 10(5 points)

The State of Alabama exports goods and services to other states and around the world. List and discuss two examples presented to you in Unit 4 that explains why this is beneficial to the state.

Your answer:

Question 11(3 points)

When describing Alabama's economy, the best description would be it is _____________.

a

a very diverse economy that produces everything from peanuts to space products

b

an economy that is still predominantly tied to agriculture

c

an environment that does not attract many international companies

d

an economy that has little to offer besides football and NASCAR

Question 12(3 points)

To stay competitive with the rest of the world, Alabama should concentrate on _____________.

a

improving the education system in Alabama, including skills training

b

become less diverse an focus more on a few products

c

return to its roots and base the economy on agricultural products

d

football and NASCAR

Question 13(3 points)

The top three countries that Alabama exports to, in order, are _______________.

a

Canada, China and Mexico

b

Canada, Germany and China

c

Japan, Germany and Mexico

d

Germany, UK and China

Question 14(3 points)

Along with other states in the South, Alabama is a leader in the production of _____________.

a

grapes

b

tomatoes

c

potatoes

d

peanuts

Question 15(3 points)

Despite the many good qualities, Alabama still lags behind the rest of the nation in terms of __________________.

a

poverty rates and automobile production

b

poverty rates and internet access

c

peanut production and automobile production

d

aerospace products and internet access

Question 16(5 points)

You learned in this unit that oligopolies such as TVA, OPEC, and producers of milk collude and form cartels. Write a short paragraph explaining:

How this affects consumers

What could occur if collusion and cartels were to form in the prescription drug industry

The role government plays if collusion and cartels form in the United States.

Your answer:

Question 17(3 points)

What advantage does a franchise have?

a

Creative control over any product sold in the store

b

Complete freedom of operational control

c

Selling a known product with approved standards

d

Freedom choosing company uniforms

Question 18(3 points)

A business owned by shareholders who have a right to company profits but face limited liability is called _____________.

a

a franchise

b

a general partnership

c

a sole proprietorship

d

a corporation

Question 19(3 points)

A general partnership is characterized by _____________.

a

limited liability by one or more of the partners

b

one partner not being involved with management decisions

c

at least two people sharing decision-making power and liability

d

a business where only one partner is liable for losses or decisions

Question 20(3 points)

The goal for most businesses, and the reason they exist in the first place is _____________.

a

to provide the best product you can

b

to serve the people

c

to earn a profit

d

to pay your employees a fair wage and provide them a job

Question 21(3 points)

What is the biggest disadvantage for a person taking their company public and selling stock?

a

The original founder of the company is giving up ownership and decision-making power.

b

They will limit themselves on being able to raise money.

c

They will be able to earn a limitless amount of money.

d

The company will not be allowed to use the money to expand the business.

Question 22(3 points)

People willing to find a partner for a business venture are probably looking for __________.

a

someone with the same talents

b

increased government regulations

c

an unlimited business life

d

access to more money and different talents

Question 23(3 points)

What is the negative aspect of taking out a loan to invest in a company?

a

The company will give up operational control of the company.

b

The company cannot use the money for new equipment.

c

The company is obligating itself to interest payments on the loan.

d

The company will have to reduce the amount of stock is has to offer.

Question 24(3 points)

All of the following allow for a monopoly to exist EXCEPT ______________.

a

geography

b

competition

c

a patent

d

government mandate

Question 25(3 points)

What type of monopoly is DeBeers Diamond Mines?

a

Geographic monopoly

b

Key Resource monopoly

c

Natural monopoly

d

Government monopoly issuing patents and copyrights

Question 26(3 points)

Which of the following isNOT

a monopoly?

a

The last gas station for 100 miles.

b

The only gas station open at 1:00 am.

c

A company that has the patent on a popular product.

d

A restaurant selling a $6 hamburger.

Question 27(3 points)

A characteristic of perfect competition is ___________.

a

buyers have more control over price than do sellers franchise.

b

sellers have more control over price than do buyers

c

buyers and sellers have complete control over price

d

buyers and sellers have no control over price

Question 28(3 points)

Ifproduct differentiation

is completely successful, what might the monopolistic competitor enjoy?

a

less profit

b

brand loyal customers

c

less advertising expense

d

less repackaging of their product

Question 29(3 points)

Identify the type of market described below:

Many sellers

Similar but differentiated products

Limited control over prices

Few barriers to entry and exit

a

Monopolistic Competition

b

Oligopoly

c

Monopoly

d

Perfect (Pure) Competition

Question 30(3 points)

A product that is identical to all other products in the market is considered _________.

a

differentiated

b

standardized

c

unique

d

special

Question 31(3 points)

All of the following are ways for businesses to differentiate their products from a competitor EXCEPT __________.

a

highlighting differences

b

packaging

c

standardization

d

advertising

Question 32(3 points)

A market structure in which a seller sells a unique product that has no close substitutes is called ______________.

a

perfect competition

b

oligopoly

c

monopolistic competition

d

a monopoly