Worksheetseconomics topic 5
Total questions: 20
Worksheet time: 10mins
Based on the table, which of the following is an accurate statement about nonfarm sole proprietors in the industrial sectors shown?
Most professionals and scientists are sole proprietors.
Unemployment is greatest among workers in transportation and warehousing.
Many construction workers and real estate agents earn a living as sole proprietors.
More workers are employed by sole proprietors in arts, entertainment, and recreation than by sole proprietors in retail trade.
The board of directors and the officers of a corporation make decisions that have a major impact on the corporation’s earnings, which may result in profits and losses. In either case, the corporation’s stockholders will hold management accountable for the company’s performance.
Under what circumstances might stockholders be displeased with a corporation’s performance?
if the company’s stocks are bought on the stock exchange
if the company’s stocks are sold on the stock exchange
if the company’s stocks increase in value on the stock exchange
if the company’s stocks lose value on the stock exchange
Julia plans to become a sole proprietor who upholsters furniture in her home. Which statement about Julia’s plan is true?
Julia will have to obtain a business license if required by law to do so.
Julia will have to obtain a site permit for her business.
Julia will not have to pay income tax, because she is the sole receiver of profit.
Julia will have limited liability for any losses she incurs because she is working from home.
Which of these businesses could be the partnership described in the bottom row of the table?
A convenience store is owned by equal partners,a mother, a father, and their adult daughter. All three work full time at the convenience store.
A dry-cleaning establishment is owned and operated by one man. His brothers have invested some money in the business but don’t have any responsibilities for it.
A canoe rental shop is owned and operated by one woman. She has taken out loans from two different banks.
An art gallery is owned and operated by a woman whose husband helps part-time. They have hired an assistant to help run the gallery.
What incentive does a parent company have for providing training and support to a franchise owner?
Royalties might increase because a better-trained franchise owner will make more money.
Royalties might decrease because a better-trained franchise owner will make more money.
Standard fees might increase because a better-trained franchise owner will make more
money.
Standard fees might decrease because a better-trained franchise owner will make more money
Assuming all companies shown in the diagram sell office products, what is the best description of the merger illustrated by the diagram?
a vertical merger
a series of vertical mergers
a horizontal merger
a series of horizontal mergers
What type of business organization does this table represent?
sole proprietorship
partnership
corporation
cooperative
Corporate shares were offered for sale to the public for the first time yesterday. According to the company’s founders, they hope to use the funds raised in this initial public offering to invest in building several new factories.
Based on the excerpt from a news story, which statement is true?
The corporation is raising money by selling bonds.
The corporation is raising money by selling stocks.
The corporation is raising money by building new factories.
The corporation is raising money by becoming a closely-held corporation
Suppose a firm that makes appliances merges with a company that produces running shoes, and it later also buys a dairy. What is this combination called?
franchise
horizontal merger
cooperative
conglomerate
What does this kind of business organization have in common with a corporation?
It pays out some of its earnings to its owners.
It markets the goods produced by its owners.
It keeps its owners up to date on industry trends.
It funds itself by selling shares of stock to its owners
Which of the following characteristics do corporations share with many nonprofits?
They are driven by a quest for profits.
They may use lobbyists to influence lawmakers.
They pay income taxes.
They invest all profits in the organization
Cooperatives are based on several principles, which include voluntary and open membership, democratic control of the organization by its members, and sharing of contributions and benefits by members.
What does “democratic control” LIKELY mean in this context?
Members can engage in political discussions.
Members are free to open their own businesses.
Members belong to the Democratic Party.
Members make decisions by voting
Which of the following is a reason for employers to hire more temporary workers instead of permanent workers?
Employers know that statistics show that most people prefer temporary employment.
Employers can cut costs because temporary workers typically receive fewer benefits.
Employers don’t have to pay Social Security and Medicare taxes for temporary workers.
Employers can pay temporary workers less than the federal minimum wage.
Which statement about median weekly earnings from 1980 through 2012 is supported by the graph?
Median weekly earnings rose much more quickly for women than for men.
For any given year, all men earned more than all women.
Median weekly earnings rose much more quickly for men than for women.
For any given year, men’s median weekly earnings were greater than women’s
The ultimate source of the region’s wealth is Washington’s unparalleled human capital. The population is the best educated of any large metro’s in the United States; about half the region’s adults hold bachelor’s degrees, and nearly a quarter have graduate degrees.
—Richard Florida, “The Boom Towns and Ghost Towns of the New Economy,” The Atlantic, October 2013
Which statement can be inferred from the excerpt?
Having college or graduate degrees has contributed to the wealth of many adults in Washington, D.C.
Washington, D.C., has the best colleges and universities in the nation.
In order to become wealthy, an individual must have a graduate degree.
To get a government job, a person must have an abundance of human capital.
The graph shows a supply curve for restaurant cooks. Each cook works a 40-hour week. How many cooks will be supplied if a restaurant pays $16 per hour?
4
8
16
32
What government agency’s regulations MOST LIKELY require this worker to wear protective gear?
Equal Employment Opportunity Commission (EEOC)
Occupational Safety and Health Administration (OSHA)
Bureau of Labor Statistics (BLS)
Consumer Product Safety Commission (CPSC)
Replacing human capital with physical capital is a way for
employers to cut costs.
employers to raise wage rates.
workers to avoid layoffs.
workers to increase their wages
Find the group that has the greatest percentage of workers earning hourly wages of $36 and over. Which of the following is the MOST LIKELY explanation for this group earning such high wages?
The demand for those workers is high, and the supply is low.
The demand for those workers is high, and the supply is high.
The demand for those workers is low, and the supply is low.
The demand for those workers is low, and the supply is high.
Why can a labor strike, such as the one shown in the photo, be an effective tool for union workers trying to make a company accept its demands?
It keeps the collective bargaining process from ending.
It provides a mediation process.
It can slow or stop production and, thus, profits, giving company owners an incentive to resolve the issue.
It can help both sides avoid an arbitration ruling.
