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100 Cards in this Set

  • Front
  • Back
When looking @ Supply and Demand what is labor?
Supply
When price A goes up and Demand B goes up this is an example of. . .
Substitute
What are we dealing with when price of A and B go up and down together?
Compliment
Labor unions composed of workers who engage in a particular trade or skill
Craft Union
Working at the will of the employer
Employment at will
An act where unions recognized as business union
Landrum Griffin Act
Which act gives states the right to enact right to work laws?
Taft-Harley Act
Negotiating with management on behalf of all employees
Collective bargaining
They pushed for an 8-hour workday and equal pay
Knights of Labor
Workers for a particular industry
Industrial Unions
You have to belong to the union before you are considered for employment in one of these
Closed Shops
When you do not have to belong to a union to be hired but after a probationary period you have to join is an example of
Union Shops
Dispute over which union has the authority to represent the workers
Jurisdictional Disputes
A refusal to deal with companies or purchase products sold by a company that is being struck
Secondary Boycott
Strike breakers
Replacement Workers.
any practice that forces employers to use more labor than they would otherwise or to use existing labor in an insufficient manor
Feather-Bedding
Where there is only one buyer of labor
Monopsonist
Where there is only one buyer of labor
Monopsonist
The statement "if the price of gas rises then people should by less so we should not allow the gas price to increase is an example of a

A. Positive Economic Statement
B. Biased economic Statement
C. Normative Economic Statement
D. What if statement
NORMATIVE STATEMENT
In economics, positive analysis refers to a. . .

A. Value-free approach
B. What ought to be approach
C. Value-based approach
D. Profit maximizing approach
VALUE-FREE APPROACH
Models used by economists relate to . . .
A. The way people think
B. The way people act
C. The way people interpret events
D. The spending habits of a group
THE WAY PEOPLE ACT
An approach to the study of consumer behavior that purports consumers are not fully rational, and instead invoke rules of thumb is . . .
A. Behavioral economics
B. Ceteris Paribus
C. Normative economics
D. Bounded economics
BEHAVIOR ECONOMICS
The Ceteris Paribus assumption is. . .
A. Everything is in a state of constant change
B. A change in one variable sets in motion a ripple effect of everything else.
C. Supply is independent of demand
D. Nothing changes except for the variables being studied
NOTHING CHANGES EXCEPT THE VARIABLES BEING STUDIED
____________ is an example of the government influencing consumer decisions.

A. Subsidized mass transit such as a subway fare below cost
B. A hands-off approach such as refinery set prices of gas
C. A pure free market approach such as competing costs among transportation models
D. Corporate tax breaks.
SUBSIDIZED MASS TRANSIT SUCH AS A SUBWAY FARE BELOW COST
There is a(n) ___________ relationship between price and demand for pizza.

A. Direct
B. Indirect
C. Inverse
D. Unilinear
INVERSE
What is the slope of the relationship for price of pizza to quantity demanded if demand is 200 when the price is $10, and demand is 300 when the price is $8:

A. 0.02
B. 0.50
C -0.02
D. -0.50
-0.02
A shortage of a commodity is

A. Not a scarcity
B. A scarcity
C. A contrived event
D. An illusion
NOT A SCARCITY
Economic goods include:

A. All goods
B. Only goods where supply exceeds demand.
C. Only goods where demand exceeds supply
D. Any good where quantity demanded exceeds quantity supplied at no cost.
ANY GOOD WHERE QUANTITY DEMANDED EXCEEDS QUANTITY SUPPLIED AT NO COST
Insufficient resources result in . . .
A. Scarcity
B. Shortage
C. Increased demand
D. Lower prices
SCARCITY
In economics, human capital refers to.
A. The amount of bodies in the workforce
B. The cost of labor
C. The fair market value of goods human services
D. The training and education of the workforce
THE TRAINING AND EDUCATION OF THE WORKFORCE
You must decide between purchasing a new computer, or a new phone. If you decide to buy the phone the lap top is now considered a. . .
A. Forgone expense
B. Outdated communication system
C. Trade-off
D. Opportunity Cost
OPPORTUNITY COST
What determines the price in capitalism?
A. Federal fiscal policy
B. The interaction between supply and demand
C. The cost of labor
D. The Federal Reserve / National Bank
THE INTERACTION BETWEEN SUPPLY AND DEMAND
A curve of all possible combinations of maximum outputs is called a:

A. Maximum output curve
B. Maximum profit curve
C. Production Possibilities Curve
D. Trade-off curve
PRODUCTION POSSIBILITIES CURVE
Attaining the maximum output for the inputs available is . . .
A. Profit maximization
B. Relative worth
C. Efficiency
D. Comparable advantage
EFFICIENCY
Economics is . . .
A. The study of how people allocate their limited resources to satisfy their wants.
B. The study of how people make decisions to allocate resources to satisfy unlimited needs.
C. The prediction of consumer behavior thought processes in limited resource allocation.
D. The prediction of future consumer wants based on unlimited resources
THE STUDY OF HOW PEOPLE ALLOCATE THEIR LIMITED RESOURCES TO SATISFY THEIR WANTS
The statement, "As cigarette prices fall, demand increases," is an example of . . .

A. Normative analysis
B. Positive analysis
C. Negative analysis
D. Behavioral economics
POSITIVE ANALYSIS
The supply curve has . . .
A. Normative slope
B. Univariant slope
C. Negative slope
D. Positive slope
POSITIVE SLOPE
Consumer sovereignty is best described by:

A. Consumers competing for economic rewards
B. Consumers having the freedom of choice within their means
C. Economic decisions that are based on producers
D. Individuals determining what price should be charged for commodities.
CONSUMERS HAVING FREEDOM OF CHOICE WITHIN THEIR MEANS
______ is when one or more goods people desire are not in sufficient supply to meet all wants at a price of zero dollars
A. Poverty
B. Shortage
C. Scarcity
D. Trade-off curve
SCARCITY
_______ refers to the education and training of the workers.
A. Entrepreneurship
B. Physical capital
C. Human capital
D. Labor
HUMAN CAPITAL
_______ refers to the productive contributions of workers
A. Entrepreneurship
B. Physical Capital
C. Human Capital
D. Labor
LABOR
An example of a good is. . .
A. Air
B. Land
C. Peanut Butter
D. All of the above
ALL OF THE ABOVE
The Supply curve has a . . .
A. Normative
B. Univariant slope
C. Negative slope
D. Positive slope
POSITIVE SLOPE
________ is the price of a good at a particular point in time. . .

A. Inverse price
B. Relevant price
C. Money price
D. Relative
MONEY PRICE
Assuming Ceteris Paribus, an increase in the price of a normal good will result in. . .
A. A left-ward shift in the supply curve
B. A leftward movement along the demand curve
C. A leftward shift of the demand curve
D. A change of the slope of the demand curve equal to the precent change in price.
A LEFTWARD MOVEMENT ALONG THE DEMAND CURVE
There is a _______ relationship between price and demand of a normal good.
A. Direct
B. Indirect
C. Inverse
D. Negative
DIRECT
There is a ______ relationship between price and demand of an inferior good.

A. Direct
B. Indirect
C. Inverse
D. Negative
INVERSE
Capital goods are. . .
A. Expensive goods
B. Good produced to produce other goods more efficiently
C. Securities investments
D. Natural resource investments
GOODS PRODUCED TO PRODUCE OTHER GOODS MORE EFFICIENTLY
If there is a change in consumer expectations such as anticipation of a recession, using our economic models we would predict. . .
A. A leftward shift of the supply curve
B. An upward movement on the supply curve
C. A leftward shift of the demand curve
D. A downward movement of the demand curve
A LEFTWARD SHIFT OF THE DEMAND CURVE
Disequilibrium between supply and demand . . .
A. Occurs when Quantity supplied = quantity demanded
B. Results from no market pressure to change price or quantity
C. Means the market has cleared
D. Results in either a surplus or shortage
RESULTS IN EITHER A SURPLUS OR SHORTAGE
Assume a current price for labor (minimum wage) of $7.20 per hour. If the government imposed a price floor of $8.20 per hour, historic data predicts.
A. A resultant surplus in shortage
B. A resulting shortage in supply
C. Downward movement on the demand curve.
D. None of the above
A RESULTANT SURPLUS IN SUPPLY
Using the Demand change matrix . . .
If the supply curve shifts to the right and the demand curve shifts to the left, the equilibrium price ________ and the equilibrium quantity ________.
A. Is indeterminate/ will increase
B. Will decrease / is indeterminate
C. Will increase / is indeterminate
D. Is indeterminate / will decrease
IS INDETERMINATE / WLL DECREASE
Using the Demand change matrix . . .
If the supply curve shifts to the left and the demand curve shifts to the left, the equilibrium price _______ and the equilibrium quantity ________.
A. Is indeterminate / will increase
B. Will decrease / is indeterminate
C. Will increase / is indeterminate
D. Is indeterminate / will decrease
IS INDETERMINATE / WILL DECREASE
Using the Demand change matrix . . .
If the supply curve shifts to the right and the demand curve shifts to the right, the equilibrium price _______ and the equilibrium quantity ________.
A. Is indeterminate / will increase
B. Will decrease / is indeterminate
C. Will increase / is indeterminate
D. Is indeterminate / will decrease
IS INDETERMINATE / WILL INCREASE
If demand for good is exactly 200,000 per week at any price in the price schedule, it is;
A. Elastic
B. Unit elastic
C. Inelastic
D. Perfectly inelastic
PERFECTLY INELASTIC
If the price elasticity of demand for a normal good is exactly one, then demand for the good is. . . .
A. Elastic
B. Unit elastic
D. Perfectly inelastic
UNIT ELASTIC
A cross price elasticity of 1.5 between hamburgers and hotdogs would imply that there are. . .
A. Substitues
B. Compliments
C. Unrelated
D. Perfectly inelastic
SUBSTITUTES
If suppliers will only offer a quantity of 70,00 per week of a good at any price, the good is. .
A. Elastic
B. Unit elastic
C. Inelastic
D. Perfectly inelastic
PERFECTLY INELASTIC
If the Cross price elasticity between hamburger and dill pickles is 5%, and the price of hamburgers decreases by 10%, the quantity demanded for dill pickles will. . .
A. Decrease
B. Increase
C. Remain the same
D. Is indeterminate
INCREASE
THe time period that at least one factor cannot be varied/changed is referred to as the:
A. Fixed time period
B. Short run period
C. Long run period
D. Adjustable period
SHORT RUN PERIOD
The time period in which all factors can be varied/changed is referred to as the:
A. FIxed time period
B. Short run period
C. Long run period
D. Adjustable period
SHORT RUN PERIOD
An example of a fixed factor setting a cap on production volume is:
A. Production labor
B. Plant size
C. 2 year contract for Plastic Pellets
D. Marginal fixed costs
PLANT SIZE
An example of a variable factor of production volume that can be altered with demand in the short run is. . .
A. Production labor
B. Plant size
C. 2 year contract for Plastic Pellets
D. Marginal fixed costs
PRODUCTION LABOR
The total physical product curve represents
A. Maximum feasible output for a firm
B. The increased labor of a firm vs. other imputs
C. The diminishing returns of production
D. None of the above
MAXIMUM FEASIBLE OUTPUT FOR A FIRM
If the Blow Torch Manufacturing Cooperation produces 5,000 blow torches week with 500 labor hours per week, what is Blow Torch Manufacturing Corporation's Average PHysical Product. . .
A. Ten
B. 2.5 million
C. One thousand
D. On tenth
TEN
The saturation point is where the marginal physical product value;
A. Turns positive
B. Becomes flat
C. Becomes zero
D. Becomes negative
BECOMES NEGATIVE
________ do not vary with output, and the magnitude of __________ varies with output.
A. Fixed costs / Variable costs
B. Average total costs/ Marginal costs
C. Fixed costs / Average total costs
D. Marginal costs / Variable costs
FIXED COSTS / VARIABLE COSTS
The cost incurred from producing the next unit (one more additional unit of output) is:
A. The Variable cost
B. THe cost of labor
C. THe marginal cost
D. The additional total cost
THE MARGINAL COST
The optimal production point is found where:
A. MC > ATC
B. MC > AVC
C. MC < AVC
D. MC = AVC
MC = AVC
Referring to trend forecasting, trends are
A. Movement of economic variables over time
B. Interaction of supply and demand
C. Progressive costs of labor
D. General cyclical fluctuations of product/service demand
MOVEMENT OF ECONOMIC VARIABLES OVER TIME
The long-run average cost curve has a smiley face (negative slope on the left, flat in the middle, and positive slope on the right) because of:
A. Economies of scale
B. Constant returns to scale
C. Diseconomies of scale
D. All of the above
ALL OF THE ABOVE
If the Blow Torch Manufacturing Corporation is experiencing economies of scale, it's:
A. Output is increasing an Average total costs are decreasing
B. Output is increasing an Average total costs are increasing a little less
C. Output is increasing, but less than it's Average total cots are increasing
D. None of the above
OUTPUT IS INCREASING AN AVERAGE TOTAL COSTS ARE DECREASING
When a company is experiencing constant returns to scale:
A. There is no change in Long-run average costs with an increase in output
B. Long-run average costs increase in proportion to the increase in output
C. Only the fixed costs change
D. Variable costs increase proportionately to fixed costs
THERE IS NO CHANGE IN LONG-RUN AVERAGE COSTS WITH AN INCREASE IN OUT PUT
Diseconomies of scale can result because:
A. There are too man workers and they get in the way
B. It costs more for large quantities of material
C. The organization is too large for efficient transfer of information
D. It costs more for labor
THE ORGANIZATION IS TOO LARGE FOR EFFICIENT TRANSFER OF INFORMATION
The definition of a perfectly competitive market is:
A. A market structure where individual buyers and sellers have no effect on market price
B. A market with a single supplier of a god with no close substitutes.
C. A large number number of suppliers producing similar but not identical products with little to no barriers to entry
D. A market structure with very few sellers, dependent on the actions of the other sellers
A MARKET STRUCTURE WHERE BUYERS AND SELLERS HAVE NO EFFECT ON MARKET PRICE
The definition of an oligopoly is:
A. A market structure where individual buyers and sellers have no effect on market price.
B. Market with a single supplier of a good with no close substitutes
C. A large number of suppliers producing similar but not identical products with little to no barriers to entry.
D. A market structure with very few sellers, dependent on the actions of the other sellers
A MARKET STRUCTURE WITH VERY FEW SELLERS, DEPENDENT ON THE ACTIONS OF THE OTHER SELLERS
A definition of a monopoly is:
A. A market structure where individual buyers and sellers have no effect on market price
B. A market with a single supplier of a good with no close substitutions
C. A large number of suppliers producing similar but not identical products with little to no barriers to entry.
D. A market structure with very few sellers, dependent on the actions of the other sellers
A MARKET WITH A SINGLE SUPPLIER OF A GOOD WITH NO CLOSE SUBSTITUTIONS
The definition of competitive monopoly is:
A. A market structure where individual buyers and sellers have no effect on market price
B. A market with a single supplier of a good with no close
C. A large number of suppliers producing similar but not identical products with little to no barriers to entry.
D. A market structure with very few sellers, dependent on the actions of the sellers.
A LARGE NUMBER OF SUPPLIERS PRODUCING SIMILAR BUT NOT IDENTICAL PRODUCTS WITH LITTLE TO NO BARRIERS TO ENTRY
A firm in a perfectly competitive market is:
A. Too small to effect the price of the good that it sells
B. Large enough to collude with other firms to influence the price of the good.
C. Differentiated enough to influence the price of the good it sells
D. Part of a cartel that influences the price of the good that it sells
TOO SMALL TO EFFECT THE PRICE OF THE GOOD THAT IT SELLS
OPEC s an example of:
A. Bilateral trading union
B. Cartel
C. Perfectly competitive market force
D. Monopoly
CARTEL
Perfectly competitive markets deal in:
A. Differentiated products
B. Substitute products
C. Homogenous products
D. Exceptionally scarce products
HOMOGENOUS PRODUCTS
Competitive monopoly markets are characterized by __________ products:
A. Differentiated
B. Substitute
C. Homogenous
D. Exceptionally scarce
DIFFERENTIATED
A firm that is a monopoly is:
A. A price taker
B. A price maker
C. A price searcher
D. None of the above, the government sets the price
A PRICE SEARCHER
If a market has a perfectly elastic demand curve, the firms in that market are
A. A price takers
B. A price makers
C. A price searcher
D. Non of the above, the government sets the price
A PRICE TAKER
In a perfectly elastic market, marginal revenue is:
A. Less than the market price
B. Equal to the market price
C. Greater than the market price
D. Greater than marginal cost
EQUAL TO THE MARKET PRICE
In a perfectly competitive market, maximum profits attained where:
A. Marginal revenue equals average total costs
B. Marginal revenue equals marginal total costs
C. Marginal cost equal average total cost
D. Average total cost
MARGINAL REVENUE EQUALS MARGINAL COST
In a perfectly competitive market, there is increased profit on the next unit produced as long as.
A. Marginal revenue is greater than marginal cost
B. Marginal revenue is equal to the marginal cost
C. Marginal revenue is less than marginal cost
D. Marginal revenue is less than fixed costs
MARGINAL REVENUE IS LESS THAN MARGINAL COSTS
The shutdown point occurs where:
A. Price is less than marginal revenue
B. Price is equal to marginal cost
C. Price is equal to average variable cost cost
D. Price is less than average variable cost
PRICE IS LESS THAN AVERAGE VARIABLE COSTS
Generally, in the short-run a company relies on ___________ as opposed to shutting down
A. Loans
B. Cash Reserves
C. Margin Income
D. None of the above
CASH RESERVES
Economic profit is realized when:
A. Total revenue < total costs
B. Total revenue = total costs
C. Total revenue > total costs
D. None of the above, they fail to include opportunity costs
NONE OF THE ABOVE, THEY FAIL TO INCLUDE OPPORTUNITY COSTS
A natural monopoly can result from:
A. Governmental actions such as licensing requirements
B. Economies of scale
C. Control of an essential resource
D. All of the above
ECONOMIES OF SCALE
A monopolistic market is primarily characterized as:
A. Having significant barriers to entry
B. Having minimal barriers to entry
C. Not influenced by barriers to entry
D. Having governmental restrictions on entry
HAVING SIGNIFICANT BARRIERS TO ENTRY
A firm that is a monopoly is. . .
A. A price taker
B. A price maker
C. A price searcher
D. None of the Above, the government sets the price
A PRICE SEARCHER
For a pure monopoly:
A. Marginal revenue is always less than price
B. Marginal revenue is always equal to price
C. Marginal revenue is always greater than price
D. Marginal revenue is unrelated to price
MARGINAL REVENUE IS ALWAYS LESS THAN PRICE
Selling a product at more than one price point with no relationship to marginal cost is:
A. Price differentiation
B. Monopolistic manipulation
C. price discrimination
D. Illegal
PRICE DISCRIMINATION
_______ produce at the price - output combination that amxamizes profit:
A. Price creators
B. Price makers
C. Price takers
D. Price searchers
PRICE SEARCHERS
Edward Chamberlin studied:
A. Perfect competition
B. Pure monopolies
C. Monopolistic competition
D. Oligopolies
MONOPOLISTIC COMPETITION
A market characterized by a few dominant firms, significant barriers to entry, susceptibility to collusion is:
A. Perfect Competition
B. Pure Monopoly
C. Monopolistic Competition
D. Oligopoly
OLIGOPOLY
A market characterized by a high number of sellers, differentiated products, advertising, and ease of entry is:
A. Perfect competition
B. Pure Monopoly
C. Monopolistic Competition
D. Oligopoly
MONOPOLISTIC COMPETITION
Agreeing with competitors to set a price higher than either free competition or market equilibrium would produce can occur in:
A. Perfect competition
B. Pure monopoly
C. Monopolistic Competition
D. Oligopoly
OLIGOPOLY