Economic Test- Chapter 3

Which of the following is a private organization that attempts to influence public officials to act or vote in ways that will benefit the group's members?

• public policy group

• free enterprise group

• interest group

• market research group

What is the most effective way for consumers to make their desire known to businesses?

• through mall and phone surveys

• by protesting and boycotting products

• by hiring lobbyists and joining consumer groups

• by the purchases they make

What is the positive externality?

• an economic side effect that generates unexpected benefits

• a cash flow that will benefit both the government and the businesses who interact with it

• a way to generate trade that will benefit people who are from other countries

• an extra payment to welfare recipients

What does the Temporary Assistance for Needy Families program provide?

• cash to workers injured on the job

• compensation to all who lose jobs

• retirement income for the elderly

• cash to the states to help run their welfare programs

What is the difference between a business cycle and the day-to-day ups and downs of the market?

• A business cycle is a major, prolonged fluctuation rather than a day-to-day movement

• The day-to-day fluctuations are more likely to have an impact on people's finances

• A business cycle is usually more restricted, whereas market fluctuations are worldwide

• The day-to-day ups and downs of the market can be much more extreme than a business cycle

What effect does new technology usually have on an economy?

• it shows an economy down for at least a while

• it reduced the dependence of the economy on business

• it makes the economy stronger and more efficient

• it reduces the available jobs

Which of the following is a critical rule for determining whether something is a public good?

• the total benefits to society are greater than the total cost

• the benefits of the facility are greater for the society than for the individuals using it

• the total cost is small foe each individual taxpayer

• the benefit to each individual who uses the facility is greater than the cost

Which of the following is NOT an example of a public good?

• municipal libraries

• shopping malls

• national parks

• highways

What protections does OSHA give people in the United States?

• consumer protection in buying foods

• regulations on workplace safety and information about hazards in the workplace

• regulations about clean environment

• protection for certain key industries such as logging

What is the term for the total value of all goods and services produced in a particular economy?

• open market value

• net worth

• standard of living

• gross domestic product (GDP)