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33 Cards in this Set

  • Front
  • Back
1. In a market system, those who own the most highly valued resources:
xxa. have the highest income
2. Census data on the income distribution among families in the United States in
recent years show:
xxa. a rising share earned by the top fifth and a declining share earned by the
bottom fifth
3. The distribution of income in the United States is:
xxa. more concentrated than the distribution of income in other developed
countries throughout the world

OR


.c. quite similar to the distribution of income in other developed countries
throughout the world
4. In the United States, what percentage of the total wealth is earned by the poorest
fifth of the families?
xx
a. zero percent

wealth some money
5. When the Lorenz curve moves towards the diagonal, this shows:
his shows:
a. the rich getting richer and the poor getting poorer
6. Since a market system distributes incomes based on ownership of resources,
this means that incomes are distributed:
xxb. unequally
7. If an employer who currently employs 100,000 workers is considering a job
applicant who can increase the firm‟s total revenue by more than the addition to
total cost, the employer should:
xxc. hire the job applicant regardless of how many employees the firm already has
8. Under competitive conditions, the wage is determined by:
xx
ALL THE ABOVE
a. administered pricing
b. government minimum
-
wage laws
c. the forces of supply and demand
d. the extent to which unions are able to count
eract the power of management
9. Currently, the approximate percentage of American workers that belong to
unions is
xxb. about 12% TENISH 12 AND DROPPING
10. Which piece of legislation gave unions the right to organize and bargain
collectively
wagner act
11. The threat of a strike:
xx. a. can serve as an incentive for labor and management to reach an agreement
12. Union membership over the last five decades has:
xx
e. declined
13. Currently, union membership in the U.S. is:
xxa. declining as a percentage of the labor force
14. The Employee Free Choice Act:
xxa. takes away the secret ballot

OR B

b. makes it easier to organize a union
15. The basis of the benefits of specialization is:
xxa. comparative advantage

ABSOLUTE ADVANTAGEDONT TELL ALL
16. Absolute advantage:
xxd. means that a country can produce more of two goods than another country
17. A country should export only those goods for which, relative to its trading
partners, it has the:
xxe. lowest opportunity cost
18. Juanita, a lawyer, can type faster than Jill, her secretary. Jill, on the other hand,
does not have the ability or skills to practice law. Applying the principles of
international trade to this situation, an economic consultant advises Juanita to:
xxb. practice law and leave all the typing to the secretary
19. Assume the United States can use a given amount of its resources to produce
either 200 airplanes or 50 submarines and Japan can employ the same amount
of its resources to produce either 400 airplanes or 60 submarines. Japan should
specialize in:
xxa. airplanes JAPAN WAY BETTER IF I WAS ASKING OF THE UNITED STATESshe should do the other one
20. Free trade theory suggests that when trade takes place:
xxc. both nations are better off
21. In educational institutions, teachers are paid according to their marginal
productivity.
a. True
b. False
xxeducational false
22. In sports, athletes like Favre are paid according to their marginal productivity.
a. True
b. False
xx favre true
23. By 1900, most employers were willing to recognize unions as representatives of
their employees.
a. True
b. False
xxb false bosses have no recognition of fredom for employees
24. The Wagner Act was the first significant piece of “pro-labor” legislation.
a. True
b. False
xx true it helps
25. In a market system, factors are paid according to their marginal productivity.
a. True
b. False
xx market system true
26. In a command system, factors are paid according to their marginal productivity.
a. True
b. False
xxcomand payment is false
27. If the MRP is less than the wage, the firm should hire more labor.
a. True
b. False
xxFalse cutting into profit
28. Income distribution in the United States is quite similar to that in other
industrialized nations.
a. True
b. False
xx false
29. It is possible for a nation to have an absolute advantage in the production of a
product, but not a comparative advantage in the production of the same product.
a. True
b. False
xx True superkid
30. Most world economies are mixed economies.
a. True
b. False
xx true
31. If wage rates are lower in Mexico than in Germany, labor costs per unit of output
can still be higher in Mexico.
a. True
b. False
xx True if the German employees are that much better.
32. It is possible for one country to have a comparative advantage in the production
of all products.
a. True
b. False
xx false no we all just have one big edge
33. Most labor negotiations in the U.S. end without a strike.
a. True
b. False
xx corporations lose more time to colds than to labor issues