Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
37 Cards in this Set
- Front
- Back
|
1. What is an Industry?
|
a group of firms that produce identical or similar Products
|
|
|
2. A group of plants that is owned and operated by a single firm and that consists of oil fields, refineries, and gasoline stations best illustrates?
|
vertically integrated firm
|
|
|
3. The corporate form of business enterprise has promoted the development of large-scale business operations because?
|
corporations have been able to marshal large amounts of financial capital through the scale of stocks and bonds
|
|
|
4. What is limited liability?
|
creditors have no legal claim on the personal assets of a corporate stockholder
|
|
|
5. What are stocks?
|
are shares of ownership of a corporation
|
|
|
6. What are corporate bonds?
|
promises by a corporation to repay a loan
|
|
|
7. By what means may a government lessen income inequality?
|
a. providing transfer payments to the poor
b. directly modifying market prices as, for example, by establishing a legal minimum wage c. using a tax system to tax the wealthy relatively more heavily than the poor. |
|
|
8. What occurs if spillover costs are not internalized?
|
the equilibrium output will exceed the most efficient output
|
|
|
9. What is a market externality?
|
economic costs and benefits of market activities that go to those who are not directly involved in the market transaction
|
|
|
10. What is the world’s leading trading nation?
|
united states
|
|
|
11. What is a sole proprietorship?
|
an unincorporated business owned by one individual
|
|
|
12. What is a partnership?
|
two or more individuals own and operate an unincorporated business under a partnership agreement
|
|
|
13. What is a corporation?
|
a legal entity in and of itself and is distinct from its individual owners (stockholders)
|
|
|
14. Import quotas do not...
|
facilitate world trade
|
|
|
15. What nation has emerged as one the world’s top trading nations?
|
China
|
|
|
16. Why are exchange rates important?
|
they link the price levels of various nations to one another
|
|
|
17. A change in the dollar price of yen from $1=100 yen to $1=50 yen will:
|
increase u.s. exports and depress Japanese exports
|
|
|
18. What is an exchange rate?
|
The equilibrium price in a foreign exchange market
|
|
|
19. If yesterday $1 would buy 800 south Korean won; but today $1 would only buy 790 won; the: dollar has...
|
depreciated in value
|
|
|
20. What does the world trade organization(WTO) do?
|
hears and rules on trade disputes between nations
|
|
|
21. What is a nations GDP?
|
the dollar value of the total output produced within the borders of that nation, in a given year
|
|
|
22. The GDP would be overstated if?
|
intermediate goods and services were included in GDP
|
|
|
23. What do consumption expenditures include?
|
consumer durable goods, consumer nondurable goods, and services
|
|
|
24. Net exports are negative when…
|
a nations imports exceed its exports
|
|
|
25. What does an investment include?
|
business expenditures on machinery and equipment
|
|
|
26. In calculating GDP, what things are not counted?
|
governmental transfer payments, such as social security or unemployment compensation
|
|
|
27. An economy’s production capacity is expanding when?
|
domestic investment exceeds depreciation
|
|
|
28. What is real GDP?
|
GDP data that have been adjusted for changes in the price level
|
|
|
29. Suppose that inventories were $40 billion in 2003 and $50 billion in 2004. In 2004, accountants would?
|
add $10 billion to other elements of investment in calculating total investment
|
|
|
30. What needs to happen for real GDP per capita to rise?
|
real GDP must increase more rapidly than population
|
|
|
31. the number of years required for real GDP to double can be found by?
|
dividing 70 by the annual growth rate
|
|
|
32. when is the united states economy considered to be at full employment?
|
about 4-5% of the labor force is unemployed
|
|
|
33. Kimberly voluntarily quit her job as an insurance agent to return to school full-time to earn an MBA degree. With degree in hand she is now searching for a position in management, Kimberly presently is?
|
frictionally unemployed
|
|
|
34. The aggregate cost of unemployment can be measured by the amount by which?
|
potential GDP exceeds actual GDP
|
|
|
35. Demand-pull inflation occurs when?
|
when total spending exceeds the economy’s ability to provide output at the existing price level
|
|
|
36. What is cost-push inflation?
|
36. inflation initiated by increases in wages or other resource prices
|
|
|
37. In which of the following industries or sectors of the economy is output likely to be reduced by the recession phase of the business cycle?
|
Capital goods
|
