Notgrass Economics Lesson 3 Questions And Answers Graded A+

A group of workers who organize themselves and negotiate with business owners for higher wages and benefits is called what? - labor union Define poverty rate. - The percentage of the population that lives below what the government determines to be the minimum income to provide needed goods and services. Give 4 examples of how a country at war can negatively affect trade? - workers leave to become soldiers, workers are wounded or killed, factories destroyed, trade with other countries disrupted How might regulation increase the cost of goods? - companies pass on the costs of regulations to consumers in the form of higher prices What are three examples of institutions that help an economy operate? - corporations, labor unions, banks What is microeconomics? - the study of how households and firms make decisions and how they interact in markets What is the meaning of the term gross domestic product (GDP)? - a measure of the value of all of the finished goods and services produced within a country What term describes economic effects external to the direct production of goods - externalities Why do high taxes on income discourage efforts by individuals to generate more income? - much of what they earn has to go to the government Why do many American companies choose to have their products made overseas? - cheaper labor