WorksheetsEconomics Unit 2 Review
Total questions: 42
Worksheet time: 21mins
Name
Class
Date
1.
1. Sole proprietors have ____, meaning they are financially responsible for all problems related to their businesses.
a)
financial capital
b)
unlimited liability
c)
stock
d)
limited liability
2.
2. A ____ is a business that has many of the rights and responsibilities of an individual.
a)
corporation
b)
partnership
c)
sole proprietorship
d)
closed shop
3.
3. Ownership shares of a corporation are called
a)
charters.
b)
bonds.
c)
bills.
d)
stocks.
4.
4. Stockholders elect a ____ to act on their behalf.
a)
manager
b)
president
c)
board of directors
d)
chief executive officer
5.
5. ____ means that stockholders are not responsible for the debts of the corporation.
a)
Unlimited liability
b)
Double taxation
c)
Limited liability
d)
Sole proprietorship
6.
6. ____ is when union and company officials meet to discuss the terms of the workers’ new contract.
a)
Mediation
b)
Collective bargaining
c)
Arbitration
d)
Closed shop
7.
7. ____ is when a third party listens to both sides and then decides how to settle the disagreement.
a)
Mediation
b)
Closed shop
c)
Arbitration
d)
Collective bargaining
8.
8. In a ____ shop, workers do not have to join a union, but can choose to do so.
a)
modified union
b)
closed
c)
union
d)
free
9.
9. Businesses are required to treat all workers fairly and without _________.
a)
arbitration.
b)
transparency.
c)
mediation.
d)
discrimination.
10.
10. A ____ is a business owned and operated by a single person.
a)
corporation
b)
partnership
c)
sole proprietorship
d)
cooperative
11.
11. ____ is the money needed to run a business or enable it to grow larger.
a)
Charter
b)
Stock
c)
Seed money
d)
Financial capital
12.
12. What is the name of a business owned by two or more people?
a)
sole proprietorship
b)
corporation
c)
partnership
d)
closed shop
13.
13. Before a corporation can form, it must get permission from the government in the form of a
a)
article of partnership.
b)
corporate deed.
c)
charter.
d)
grant of incorporation.
14.
14. Who are the owners of a corporation?
a)
chief executive officers
b)
board of directors
c)
charter members
d)
stockholders
15.
15. Some workers join ____ in order to have a better chance to obtain higher pay and better working conditions.
a)
closed shops
b)
labor unions
c)
collective bargaining
d)
strikes
16.
16. ____ is when a third party tries to help the union and the company reach an agreement.
a)
Mediation
b)
Lockout
c)
Closed shop
d)
Collective bargaining
17.
17. Many states have passed ____ laws, which prevent unions from forcing workers to join.
a)
union-busting
b)
anti-union
c)
free-labor
d)
right-to-work
18.
18. What is the term that describes the regular release to the public of a company’s important financial information?
a)
mediation
b)
transparency
c)
full disclosure
d)
social responsibility
19.
19. ____ is the obligation to pursue goals that benefit society and not just oneself or one’s business.
a)
Mediation
b)
Arbitration
c)
Social responsibility
d)
Transparency
20.
20. The ____ shows an economy’s production after the distortions of price increases have been removed.
a)
real GDP
b)
business cycle
c)
peak
d)
consumer price index
21.
21. An economic ____ occurs when real GDP goes up.
a)
recession
b)
peak
c)
expansion
d)
business cycle
22.
22. The ____ is the percentage of the civilian labor force who are not working but are looking for jobs.
a)
fiscal policy
b)
CPI
c)
TANF
d)
unemployment rate
23.
23. What is a sustained increase in the general level of prices?
a)
inflation
b)
recession
c)
expansion
d)
consumer price index
24.
24. Which term describes the highest point in an economic expansion?
a)
real GDP
b)
peak
c)
inflation
d)
CPI
25.
25. The alternating periods of economic growth and decline make up
a)
a recession.
b)
a peak.
c)
an expansion.
d)
the business cycle.
26.
26. Which term describes all civilians 16 years old or older who are either working or looking for work?
a)
working public
b)
civilian labor force
c)
unemployment rate
d)
labor union
27.
27. What is the stock market?
a)
A type of farmers market where people buy and sell food.
b)
A place where parts of businesses are bought and sold.
c)
A type of bank that gives out loans to new businesses.
d)
A special type of grocery store that sells stocks.
28.
29. Why would a company need to issue stock?
a)
To increase its' customer base.
b)
To raise money.
c)
To stop the government from regulating it.
d)
To show customers that it's successful.
29.
30. IPO stands for
a)
Itemized Public Organization
b)
Intermediate Primary Offering
c)
Initial Public Offering
d)
Imminent Profitable Option
30.
31. The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important?
a)
It tells Americans how much debt the country is in.
b)
It tells Americans how many jobs are out there.
c)
It helps economists predict when a stock market crash will happen.
d)
It provides a snapshot of how the stock market and the US economy is doing.
31.
32. What do the bear and the bull stand for?
a)
The bear means stocks are falling and the bull means stocks are going up.
b)
They are signs that the Stock Market is opened and closed.
c)
The bear means stocks are rising and the bull means stocks are falling.
32.
33. When you purchase a stock for $10.00 and then sell it one month later at $20.00 you are
a)
Buying low and selling high
b)
Buying high and selling low
c)
Short selling low and short covering high
d)
Short selling high and short covering low
e)
Gaining dividends
33.
34. When you receive corporate profits from your ownership of stock you are
a)
Buying low and selling high
b)
Buying high and selling low
c)
Short selling low and short covering high
d)
Short selling high and short covering low
e)
Gaining dividends
34.
35. The ____ is the federal corporation that insures individual accounts in financial institutions.
a)
S&L
b)
FDIC
c)
FOMC
d)
Federal Reserve
35.
36. The major policy-making group within the Fed is the
a)
FDIC.
b)
Board of Governors.
c)
Federal Advisory Committee.
d)
FOMC.
36.
37. ____ involves controlling the supply of money and the cost of credit according to the needs of the economy.
a)
Monetary policy
b)
Discount rate
c)
Reserve
d)
Open market
37.
38. What is the interest rate the Federal Reserve charges on its loans?
a)
central rate
b)
reserve rate
c)
open market rate
d)
discount rate
38.
39. The ____ Act established the Federal Deposit Insurance Corporation.
a)
Federal Reserve
b)
Glass-Steagall Banking
c)
National Banking
d)
Gramm-Leach-Bliley
39.
40. The Federal Reserve System is our nation’s
a)
charter bank.
b)
commercial bank.
c)
FOMC.
d)
central bank.
40.
41. The Federal Reserve System is managed by the
a)
FOMC.
b)
Board of Governors.
c)
FDIC.
d)
Federal Advisory Committee.
41.
42. ____ operations refers to the buying and selling of government bonds and treasury bills by a central bank in order to control the money supply.
a)
Open market
b)
Reserve
c)
Monetary policy
d)
Discount
42.
43. Which term describes the percentage of deposits that banks have to set aside either in their vaults or in their Federal Reserve district bank?
a)
futures
b)
cache
c)
reserve
d)
certificate of deposit
100 %
