High School Economics Questions and Answers Rated A

High School Economics Questions and Answers Rated A This is the situation where some necessities have little value while non-necessities have a much higher value. paradox of value These are manufactured goods that are needed to produce other goods and services. capital goods A decision making grid can be used to evaluate these. alternative choices of action Where would one find a division of labor? assembly line Why is the study of economics important? helps us make better decisions This is the dollar value of all final goods and services and the most comprehensive measure of a country's total production output. gross domestic product (GDP) This is a popular model used to illustrate the concept of opportunity cost. production possibilities frontier An economy at its production possibilities frontier is operating at this. full potential This is the money used to buy the tools and equipment needed for production. financial capitol When actions in part of the country or world have an economic impact on what happens elsewhere it is an example of what? economic interdependence What is the purpose of government in a command economy? make major economic descicions Give an example of a market economy. United States Give examples of the economic and social goals. Economic: freedom, efficiency, equity, security, growth, full employment and price stability Which group of people determines the products that a free enterprise economy produces? consumers The U.S. can best be described as having a what type of economy? modified private enterprise What are characteristics of a command economy? Chchanges directions quickly, not designed to meet consumers wants, and no incentives to work hard What are characteristics of a market economy? does not provide for everyone's basic needs The minimum wage is an example of a federal law that supports which economic and social goal? Equity What is voluntary exchange? When producers & consumers voluntarily meet in the market place What is the government's role in a mixed economy? regulator charged with preserving competition In what type of partnership does the inactive partner have limited liability? limited partnerships What agency regulates the sale of stock in corporations? securities & exchange commission What type of merger involves different steps of manufacturing or marketing? verticle merger What type of organizations may provide goods and services to members? chamber of commerce What works to promote the wealth of it's members and the community? chamber of commerce In a general partnerships what are usually drawn up to protect the partners? articles of partnership What is an advantage of a corporation? limited liability for debt Give examples of the government playing a direct role in the economy. police & fire protection, court systems, libraries Give examples of a nonprofit organization. producer co-operatives, chamber of commerce, labor union In what role does the government own and manage public utilities? direct role For most products and services what does an increase in price result in? decrease of demand An increase in the price of one product results in decrease in demand for another product. How are the two two products related? compliments Advertising, fashion trends, and new product introductions do what to consumer demand? create demand If a modest price increase has little or no effect what type of demand does the product have? inelastic A business doubles the price of a product. What probably happens? dramatic decline in revenues which demonstrates the elasticity of the product. What does a demand schedule show? a listing of various quantities demanded of a product at all prices that might prevail in the market When a customer replaces an expensive item with a less expensive item, what is this an example of? substituition effect An increase in the price of cameras resultes in a decrease in the demand in the demand for film. How are the two items related? create compliments When a customer's need for a product is not urgent, what type of demand does the product probably have? elastic When a manufactures of a product reduced the price of the product the product has? unit elastic What are some things that can change the market supply curve? cost of labor, expectation that prices are about to increase , number of sellers offering the product What happens to the supply of a product if taxes on the product increases? decreases When employees are getting in each other's way the firm is in what stage of operation? stage three Fixed costs plus variable costs equals what? total cost What is reached when marginal cost is equal to marginal revenue? level of profit-maximizig output What happens to the supply curve fewer products are offered for sale at each and every price? shifts to the left What deals with the relationship between the factors of production and the output of goods and services? theory of production What type of costs are rent payments and property taxes? fixed cost Why do businesses engage in e-commerce? low fixed cost What will be maximized when marginal revenues equals cost? profits How do prices perform their production function? markets find their own prices without interference, prices are easily understood, prices favor neither the producer nor the consumer In a market economy, what is a high price a signal for consumers and producers to do? consumers buy less, producers produce more At a given price, when does a surplus occur? Quantity supplied is greater than the quantity demanded What does the federal minimum wage law demonstrate? a societal choice for economic equity over efficiency When economic or political conditions are unstable, what happens to the demand for gold? increases How do prices enable a market economy to adjust to unexplained events? adjust consumption and production What are some of the characteristics of allocatin by rationing? lack of fairness, high administrative cost, diminished insentives for workers If a competitive market is at equalibrium, and there is a sudden increase in demand, what will happen? there will be a temporary shortage and prices will go up What is the theory of competitive pricing? a set of ideal conditions and outcomes What group do deficiency payments help? farmers Which act established a federal minimum wage? fair labor standards act What was the first federal legislation to exempt unions from the antitrust laws? clayton anti-trust act Which workers have the skills to operate machines and who require a minimum amount of training? semi-skilled This is the theory that wages are based on the supply and demand for a worker's skills. traditional theory of wages What are some ways that can be used to establish more equal pay between men and woman? civil right's act of 1964, equal pay act of 1963, set aside contracts Which Act established the right of unions to collective bargaining? national labor relations act When labor and management ask a third party to collect information about a dispute and present non-binding recommendations, they are doing what? fact finding What type of worker has knowledge-based education and managerial skills? professional labor What are some facts about the minimum wage? first set at 25 cents an hour in 1939, established by the fair labor standards act, when adjusted for inflation had the most purchasing power in 1968 What is the invisible barrier that hinders woman and minorities from advancement up the corporate ladder? glass ceiling