Deck 7: Families Within the Economic Environment

Question 1

Early American families moved from producing their own goods to an economy based on using monetary wages to trade for goods. This change was made possible because of ______.

A) the stock market crash of 1929
B) capitalistic industrialization
C) the drought and Dust Bowl of the 1930s
D) westward expansion and the California gold rush

Answer 1

capitalistic industrialization

Question 2

How resources are expended to fulfill the needs and wants of individuals, families, and social groups is the study of ______.

A) consumption
B) supply and demand
C) economics
D) buyers and sellers

Answer 2

economics

Question 3

Contemporary American economics is fueled by ______.

A) skill
B) production
C) demand
D) money

Answer 3

money

Question 4

When product inventory increases against a decreasing demand, the result is a(n) ______.

A) surplus
B) shortage
C) substitute
D) extra

Question 5

When fewer products are produced than are demanded, the result is a ______.

A) surplus
B) shortage
C) substitute
D) fluctuation

Question 6

Twila buys her daughter the most popular toy at Christmas but has to pay twice the price. This is probably an example of ______.

A) an increase in value
B) a surplus in supply
C) an accommodation in supply
D) a shortage in supply

Question 7

When family income increases, their food expenditures usually ______.

A) stays the same
B) increases slightly
C) increases dramatically
D) decreases slightly

Question 8

The percentage of family income that is spent on housing is approximately ______.

A) 15%
B) 30%
C) 45%
D) 60%

Question 9

Gordon has always purchased a certain brand of tissue. This illustrates the concept of ______.

A) taste
B) fashion
C) innovation
D) market share

Question 10

The type of unemployment that includes those workers who have decided to leave one job and look for another is known as ______.

A) cyclical
B) frictional
C) typical
D) structural

Question 11

The type of unemployment that is involuntary and is the result of production lags, recession, or business restructuring is known as ______.

A) cyclical
B) frictional
C) typical
D) structural

Question 12

The type of unemployment that is involuntary and is the result of a loss in demand for certain types of jobs is known as ______.

A) cyclical
B) frictional
C) typical
D) structural

Question 13

The employment decision of a mother is based upon a comparison of the value of her work and the value of ______.

A) her earning potential
B) her time at home
C) her status
D) her salary

Question 14

Robin makes a decision to leave her position as a copy editor when her first child is born. An example of the opportunity costs for this decision is ______.

A) missing out on the next internal promotion
B) the salary that she will lose
C) health benefits
D) contributing to her 401(k) retirement plan

Question 15

The Rodriguez family enjoys getting together to make fresh corn tortillas. They usually end up with more tortillas than they need and in the summer often trade with their neighbors for homegrown tomatoes and other vegetables. This form of exchange is known as ______.

A) currency exchange
B) liquid functioning
C) bartering
D) domestic exchange

Question 16

Inflation is more likely to negatively impact which one of the following?

A) a middle-aged factory worker
B) an elderly couple living on a pension
C) a young couple with entry-level jobs
D) a retired executive

Question 17

Non-monetary exchanges include all EXCEPT ______.

A) stocks and bonds
B) time
C) emotional support
D) energy

Question 18

Compared to previous decades, the average size of the U.S. household is ______.

A) much larger
B) slightly larger
C) much smaller
D) slightly smaller

Question 19

An example of a durable good would be ______.

A) toilet paper
B) disposable contact lenses
C) a microwave oven
D) a ribeye steak

Question 20

An example of a non-durable good would be ______.

A) gasoline
B) a car
C) a computer
D) a trombone

Question 21

The American economic system is rooted in the European economic developments prior to the Revolutionary War.

Question 22

The Great Depression devastated the U.S. economy and lasted over three decades.

Question 23

Economics exists because the resources we need to fulfill our wants and needs are limited.

Question 24

A business will only exist if there is profit to be made through its exchanges.

Question 25

Producers can stimulate consumer demand by increasing the price of goods.

Question 26

Under a shortage situation, the price will decrease.

Question 27

The higher the family income, the more income is spent on food.

Question 28

Although a family may have a strong preference for a particular product, price will influence them to buy the lower price product.

Question 29

The U.S. labor force consists of all people over the age of 16 who are seeking work or who are already employed.

Question 30

Unemployment insurance is a voluntary state-funded program to assist families.

Question 31

Historically, women have always participated in the work of the family and in the economic system.

Question 32

Currently, almost one half of all American wage earners are women; however, only three out of 10 mothers are actively employed.

Question 33

Although many American adolescents are employed, they represent a much lower percentage than other developed countries.

Question 34

The true value of paper and coin currency lies within its value of exchange.

Question 35

The United States used to back its money with gold, but now operates on a paper standard.

Question 36

The government constitutes the largest spending group in the nation's economy.

Question 37

Inflation occurs when there is an increase in the general level of prices.

Question 38

According to the 2000 Census data, the average household size is 2.6, slightly higher than previous decades.

Question 39

When interest being paid on savings is lower than anticipated inflation, consumers are enticed into spending more and saving less.

Question 40

A car is an example of a non-durable good.

Question 41

What is conspicuous consumption?

Question 42

Why are families an integral part of the U.S. economy?

Question 43

What is the relationship between supply and demand?

Question 44

When a shortage occurs and the price of a particular good increases, other than to pay the higher price what else can a family do?

Question 45

How can a producer stimulate consumer demand?

Question 46

List the eight expenditures of families that cross all socioeconomic levels.

Question 47

How does innovation impact buying behavior?

Question 48

What is the desired unemployment rate and why is it necessary that we have a certain amount of unemployment?

Question 49

Name the two reasons cited by women as reasons for working outside the home.

Question 50

What are the opportunity costs of working and the opportunity costs of not working that a mother must consider.

Question 51

Explain the meaning of the label "Skippies."

Question 52

What are the arguments for and against a teen working during high school?

Question 53

Give an example of a modern barter.

Question 54

What is the advantage of the liquidity of money as a medium of exchange?

Question 55

Explain the reason that all countries have a base unit, such as the dollar for the United States, as a measure of value.

Question 56

How does credit impact the balance of the economic system?

Question 57

When interest being paid on savings is lower than anticipated inflation, consumers are enticed to spend more and save less. What is an advantage and a disadvantage to this situation?

Question 58

Explain how the exchanges of non-monetary resources are hard to calculate in terms of economic benefit?

Question 59

What is the difference between a durable good and a non-durable good? Give an example of each.

Question 60

What factors contributed to the move to capitalistic industrialization and how did it change the economic system in the United States?

Question 61

Explain the work patterns of women during the 20th century, including the factors that caused women to enter the workforce.

Question 62

Explain the idea that the true value of paper and coin currency lies within its value of exchange. Include a consideration of not only the U.S. monetary system but also the currency around the world.

Question 63

Describe how the economic system can be described using a faucet and drain illustration. Give some examples of how this system can become unbalanced.