Unit 3 Economics Review

Which has led to greater company productivity?

• globalization

• protectionism

• unionization

• specialization

Which is an example of a protectionist policy?

• limiting the # of foreign cars that can be sold in USA

• going into debt to buy large number of vehicles for military

• decrease in interest rates on loans to car companies

• deploying troops to help citizen scope with a natural disaster

Which is most likely to result from a rapid increase in the population of a city or town?

• low housing prices

• higher-paying jobs

• seller's market

• drop in population density

Which is measured by a calculation of the amount of goods and services the average person can afford to buy?

• standard of living

• inflation rate

• national income

• unemployment

Which leads to the end of a boom period in the business cycle?

• reduction in consumer demand resulting from inflation

• rise in prices resulting from higher production costs

• natural disaster resulting in greater demand for housing construction

• rise in interest rates

Which is the cause of demand-pull inflation?

• A shortage of workers increases production costs.

• Consumers want more and more goods and services, and supply can't necessarily keep up

• Foreign competition drives domestic prices higher.

• Globalization and outsourcing reduce national income.

Which is an example of a fiscal policy?

• raising taxes in order to cover a budget deficit

• preventing unions from going on strike

• increasing the level of the minimum wage

• restricting the amount of money that banks can lend

Which results from a large company's ability to take advantage of economies of scale?

• The company can offer goods more cheaply than smaller retailers.

• The company can hire fewer workers for lower wages.

• The company can rely on better technology for production.

• The company can more effectively use the Internet for advertising.

When someone buys a fourth television for his or her house, what is the result?

• a rise in the opportunity cost of buying other goods

• more efficient production of televisions

• decrease in the marginal utility of the television

• increase in demand for televisions.

Which limits the freedom of workers in the labor market?

• inflexibility of the work force

• availability of education

• level of the minimum wage

• existence of industrial robots