Economics Fall Semester Review

Which phrase best describes the effect of an increase in U.S. steel imports?

• higher tariffs on foreign steel

• fewer goods sold by US steel companies

• high wages for steel workers

• less foreign steel bough by consumers

This graph supports which conclusion about federal government revenue?

• The greatest percentage of federal revenue comes directly from individual citizens

• the category of other has more impact on federal revenues than taxation

Adam Smith advocated laissez-faire, which implies

• businesses cooperating with government agencies.

• minimal governmental control.

Which issue is most likely to be regarded as a weakness of a free enterprise economy?

• inefficiency in providing public goods

• inability to connect buyers with sellers

All of the following are tenets of capitalism except

• private ownership of property

• governmental control of businesses

• investing for profit

Which term describes a factor of production?

• inflation

• labor

• scarcity

When an automobile manufacturer builds 200,000 units of its top selling model, the company is responding mainly to which question?

• Where to produce?

• How to produce?

• What to produce?

• When to produce?

Use the information below to answer the question.

A department store needs a new furniture salesperson and a new clothing salesperson but can only afford to hire one new employee.

Which statement best explains why the store owner chose to hire a furniture salesperson instead of a clothing salesperson?

• The cost for marketing new clothing was lower.

• The opportunity cost of selling more clothing was higher.

• There were few applicants who knew about furniture.

College graduates are a segment of which factor of production?

• land

• labor

• capital

• entrepreneurship

Which term is defined as a tax on imported goods?

• tariff

• quota

• subsidy