Chapter 17 Econ.

What happens when the same amount of input, used in the same amount of time, produces a greater amount of output?

• workers lose jobs

• productivity goes up

• labor costs increase

• the GDP goes down

Which of the following provides a service rather than a good?

• grocery store

• clothing boutique

• medical office

• ice cream shop

Which business strategy is demonstrated by the factory supervisor who breaks a large job into small, separate tasks?

• economic interdependence

• specialization

• human capital investment

• division of labor

Which sector uses both taxes and borrowing to operate?

• government sector

• business sector

• product sector

• foreign sector

In a free enterprise system,

• only groups may start their own businesses

• individuals must have government approval to start businesses

• individuals can start their own businesses with little government interference

• businesses are heavily regulated by the government

The Gross Domestic Product measures the value of

• all products produced in a country during a specific year

• all intermediate goods sold in a specific counntry

• all final products produced in a country during a specific year

• all goods and products sold during a specific year

Which transaction is counted in the GDP?

• cooking a large dinner for your family

• the purchase of fabric by a furniture manufacturer

• the sale of a two year old car between private parties

• the purchase of a computer mouse pad from a store

China has the world's largest economy

• True

• False

Prices in the U.S. are established by supply and demand in markets.

• True

• False

The government can act as a consumer in the product market.

• True

• False