1142 Questions & Blanks Flashcards
When economic activity is growing, both ______ and _____ are increasing
total output
total income
Of the ingredients necessary for economic growth, __________ provide personal gain for efficient, dedicated workers; ________ includes money and people’s knowledge and expertise; and ______________ has produced changes in goods and the way that they are produced.
institutional incentives
investment
technological development
_______ are not predictors but are only rough estimates of what direction an economy is likely to take.
Representative indicators
The Employment Act of 1946 requires the U.S. government to _______________
create full employment
prevent cyclical employment
control structural employment
When unemployment sinks below the target rate, ______________ and _______________
demand exceeds supply
inflation accelerates
When unemployment rises above the target rate
supply exceeds demand and
a recession occurs
The unemployment rate is the percentage of people in the labor force who want to work but cannot find a job.
.
when calculating the unemployment rate, disregard those in the armed forces
.
Members of a stock exchange meet in one place to deal in securities, but _______ exchange bids and ask prices through the NASDAQ system
OTC brokers
NASDAQ can handle stock transactions either through the _______ or over the phone
computer link
In a/an _________, a smaller firm is purchased by a larger one, which may not take direct control of its operations
acquisition
In a/an ____________, the purchasing firm takes direct control over the purchased firm
takeover
Hostile/friendly takeover
.
A firm that does not wish to be taken over may use the ___________
poison pill strategy
Two unrelated firms might merge to _______
benefit from each other's expertise diversify get a good buy prevent a takeover bid strengthen their political-economic influence
Characteristics of a good manager
integrity
allegiance to the firm and its goals
a desire to serve others
Top management- middle management- laborers
corporation pyramid
.
The civilian ______ includes adults working for pay or in a family business and those _________
labor force
actively seeking work
In a labor market, ______ are the supply, and ______ provide the demand
workers
firms
Workers are not paid strictly according to the laws of ______ because economic, social, and political pressures influence the labor market.
supply and demand
A desire to participate in _________ may influence one’s job decisions.
nonmarket activities
Although one assumes that the _____ the wage the greater the quantity of labor supplied, the upwards sloping curve is not always accurate.
higher
1 Timothy 6:6 teaches that ______
Godliness with contentment is great gain
______ increases government revenue
reducing taxes
Government welfare programs may create a _____
negative incentive effect
Government welfare programs require ______ of those who work
higher income taxes
Any program that provides assistance based on ______ reduces people’s incentive to work
need
Demand for labor is a _______ based on demand for a product or service.
derived demand
When demand for labor increases, wages ______ and the labor supplied ______
increase
increases
Highly paid jobs tend to require more ______
preparation
_______ place restrictions on employers, and _______ are organized groups of employees who bargain collectively with their employers
Labor laws
Labor unions
Some labor laws have __________ and the free-market economy
restricted the labor market
Labor laws dictate the number of hours one may work in one ______, the minimum ____ of workers, the amount of pay for ______ work, and health and safety conditions in the workplace.
day
age
overtime
Other labor laws prevent sexual harassment or forbid ________ based on race, religion, sex, age, disability, or national origin.
discrimination
A _________ law forbids union membership as a requirement for continuing one’s employment.
right-to-work
Unions in the ____ are organized by industry; those in the ____ are organized by trade.
Congress of Industrial Organizations
American Federation of Labor
In a _______ union membership is necessary for employment; in a _____ shop, employees must join the union after a certain period of time.
closed
union
The _____ Act of 1947 limited union activities,prohibited closed shops, and allowed states to pass right-to-work laws to ban union shops.
Taft-Hartley
Because service industries have overtaken manufacturing in economic importance and
Because unions have successfully pressured legislators to pass laws that protect workers
Union membership has been decreasing in recent years
Additions to a firm’s capital stock may be in the form of ____ investment or ______ investment.
plant and equipment
inventory
Investment is affected by:
the factors of time
depreciation
sales potential
A firm may finance capital investment projects by ______ from outside sources or by using its own funds
borrowing
In either case of financing capital investment projects, the cost of the investment is the _____ or that it loses on its funds
interest the firm must pay
When interest rates ______, investment increases.
decrease
Only the ________ of an investment and the _____ are considered costs for tax purposes.
opportunity cost
depreciation of the equipment
Government encourages _______ by allowing faster depreciation or lower taxes.
increased investment
Keynesian economists believe:
that government intervention should control economic fluctuations
that society should provide everyone with a job
that structural and cyclical unemployment and more common
Classical economists believe:
that fluctuations are a natural part of the economy
that every individual is responsible for his own employment
that almost all unemployment is frictional
______ must decrease during an economic downturn, but _______ does not necessarily increase
Income
unemployment
The unemployment rate provides a measure of, and indicates _______ in, the economy.
change
A firm’s _____ includes its plant and equipment and its inventory
capital stock
