QUESTION Last quarter, 25 workers at the Pedal to the Metal factory manufactured 17 bikes per hour. After investing in new robot technology, this quarter the factory manufactured 28 bikes per hour using 15 workers. What is being measured by these figures? A) labor costs B) wholesale costs C) productivity D) unemployment E) deflation […]
QUESTION What occurs after a trough in the business cycle? A) Unemployment begins to rise. B) GDP falls. C) Economic expansion begins to slow. D) Unemployment begins to fall. E) Economic contraction begins. ANSWER Answer: D Explanation: D) The trough is the point where economic contraction ends. As expansion begins, unemployment begins to fall.
QUESTION Which of the following is NOT a phase of the business cycle? A) expansion B) stability C) peak D) trough E) contraction ANSWER Answer: B Explanation: B) Stability is considered a period of predictability in economic conditions but is not a phase of the business cycle.
QUESTION Which of the following is NOT a legal restriction on the right to make and keep profits? A) child labor laws B) antitrust laws C) workplace safety laws D) workers’ compensation laws E) truth in advertising laws ANSWER Answer: B Explanation: B) Antitrust laws are a restriction on the right to compete.
QUESTION In a free market, who has the most control? A) sellers B) buyers C) the government D) distributors E) suppliers ANSWER Answer: B Explanation: B) A business earns profits by meeting demand. Consumers’ needs, tastes, and desires drive demand.
QUESTION Rosa loves fresh tomatoes. In August, she goes to each farmers market stall, squeezing tomatoes to check for ripeness, smelling them for sweetness, looking for blotches. Since each vendor charges about the same price, she can be sure of getting the best quality. Which of the following is benefitting Rosa? A) consumer sovereignty B) […]
QUESTION A high-priced food store replaced a discount grocery in an urban neighborhood. Older residents could not afford the higher prices, so the community organized a boycott. For months the new store was almost empty. Finally, management agreed to lower its prices, and shoppers returned. What is at work here? A) monopolistic competition B) consumer […]
QUESTION Which of the following is NOT a type of free market? A) monopoly B) oligopoly C) managed competition D) monopolistic competition E) perfect competition ANSWER Answer: C Explanation: C) Managed competition is a term used in the health care industry.
QUESTION Which of the following goods and services available in the United States is NOT factored into counting GDP? A) Apple software produced in Silicon Valley B) education at the University of Iowa C) Ford trucks manufactured in Michigan D) Toblerone chocolate manufactured in Switzerland E) Honda sedans manufactured in Kentucky ANSWER Answer: D […]
QUESTION Harry is a cynical character who thinks life is rigged against “the little guy.” He says whenever you want to buy something these days, there are only a few stores that offer virtually the same thing and they basically run the table. Which industry does NOT fit Harry’s definition? A) airlines B) automobiles C) […]
