Deck 8: Services

Question 1

Services that include charities,churches,museums,etc are

A) producer services.
B) transportation and communications services.
C) consumer services.
D) non-profit services.
E) wholesale and retail trade services.

Answer 1

D

Question 2

Why do consumers require more service products today than in the past?

A) Physical commodities are becoming more complicated.
B) As work requires more hours on the job, people have less time to do things themselves.
C) Marketers persuade us to consume new types of services.
D) As income rises, people can afford more services.
E) all of the above

Answer 2

E

Question 3

Services at the national,state,and local level are

A) transportation and communications services.
B) government services.
C) wholesale and retail trade services.
D) consumer services.
E) producer services.

Answer 3

B

Question 4

In the U.S.,the largest number of employees are engaged in work that is classified as

A) government.
B) other services.
C) manufacturing.
D) business services.
E) health services.

Question 5

Services primarily sold to and consumed by corporations rather than households are called

A) producer services.
B) transportation and communications services.
C) consumer services.
D) non-profit services.
E) wholesale and retail trade services.

Question 6

Services that are intermediary between producers and consumers are

A) producer services.
B) transportation and communications services.
C) consumer services.
D) non-profit services.
E) wholesale and retail trade services.

Question 7

Which U.S.group had the lowest median income in 2008?

A) African Americans
B) Asians
C) whites
D) Hispanics
E) high skilled immigrants

Question 8

The U.S.has about ________ of its labor force engaged in services employment.

A) 25%
B) 45%
C) 50%
D) 60%
E) 80%

Question 9

What is the service sector that includes the armed forces,public servants,and public service providers?

A) transportation and communications
B) wholesale and retail trade
C) consumer services
D) producer services
E) government

Question 10

What are eating and drinking establishments,personal services,and repair and maintenance?

A) transportation and communications
B) wholesale and retail trade
C) consumer services
D) producer services
E) government

Question 11

Which of the following services has a particularly high income elasticity?

A) health care
B) legal advice
C) entertainment
D) education
E) barbershop

Question 12

What does the U.S.federal government use as a proxy measurement for services?

A) tangible outputs
B) number of tasks completed
C) customers served
D) hours worked
E) revenues

Question 13

The major components of the services sector are generally thought to be all of the following EXCEPT

A) producer services.
B) transportation and communications services.
C) consumer services.
D) government services.
E) health services.

Question 14

What are the problems encountered by using revenues as a proxy for output?

A) Revenues are distorted by changes in relative prices of service outputs.
B) Many services produce both tangible and intangible outputs.
C) Services produce only tangible outputs.
D) There are no problems encountered.
E) A and B only

Question 15

What best explains the explosion of fast-food restaurants?

A) great food
B) time savings
C) low prices
D) persuasive marketing
E) coupons

Question 16

Which of the following services has a particularly low income elasticity?

A) health care
B) travel
C) entertainment
D) transportation
E) a day at the spa

Question 17

Which U.S.group had the highest median income in 2008?

A) African Americans
B) Asians
C) whites
D) Hispanics
E) high skilled immigrants

Question 18

"Non-direct" production might include as occupation like

A) a secretary in a law firm.
B) a secretary in an automobile making firm.
C) a line worker in a factory.
D) services.
E) an industrial classification.

Question 19

The greatest gains in employment have occurred in

A) retail services.
B) construction.
C) professional services.
D) finance.
E) leisure and hospitality.

Question 20

Services employment has replaced manufacturing employment in more developed countries primarily because

A) manufacturing is contained by location, production and consumption.
B) services are constrained by location, production and consumption.
C) manufacturing activities have largely shifted to low-cost developing countries.
D) the services sector is so complex.
E) of off-shore banking.

Question 21

All of the following are reasons why a firm chooses to externalize a needed task,EXCEPT

A) limit flexibility.
B) decrease transaction costs.
C) reduce risk.
D) concentrate on core skills.
E) gain flexibility.

Question 22

In the context of services,an "export" depends on

A) the location of the sale.
B) the location of the entity that receives the service.
C) contractual arrangements.
D) who pays the bills.
E) international agreements.

Question 23

What is the largest component of financial services?

A) Commercial banking
B) Investment banking
C) Credit union banking
D) Savings banks
E) Offshore banking

Question 24

An increasingly complex division of labor has been fueled by

A) a rise in the proportion of non direct production workers.
B) the aging of the baby boom.
C) rising incomes.
D) firms no longer need administrative bureaucracies.
E) service exports.

Question 25

Which producer service is a firm most likely to externalize?

A) clerical support
B) research
C) insurance
D) real estate
E) legal services

Question 26

In which of the following service jobs would a woman be least likely to work?

A) retail
B) computer systems analyst
C) nursing
D) teaching
E) restaurants

Question 27

It is estimated that over ________ of U.S.export revenues comes from service exports.

A) 1/10
B) 1/5
C) 1/3
D) 1/2
E) 3/4

Question 28

Demand for health care and education has grown because

A) the aging baby boomers demand more health care services.
B) increasingly sophisticated technology requires that workers be better educated.
C) these services are so inexpensive.
D) all of the above.
E) A and B only.

Question 29

Income in services is more bifurcated than that in manufacturing.What does this sentence mean?

A) Incomes in services tend to be more seasonal.
B) Firms that produce services are more productive and therefore more wealthy than manufacturers.
C) Professional service providers generate high incomes while non-skilled and low-skilled service providers make low wages.
D) The income that firms produce from services is taxed at a higher rate than that produced from manufacturing.
E) The income that firms make from delivering services is distributed more evenly among employees than occurs in manufacturing firms.

Question 30

The occupation with the highest percent of women is

A) preschool teacher
B) secretary
C) nurses
D) retail sales
E) social workers

Question 31

All of the following are forces driving the growth of services EXCEPT

A) rising incomes.
B) demand for health care and education.
C) the growth and complexity of the public sector.
D) exports of services.
E) internalization of services.

Question 32

The primary purpose of investment banking is

A) providing mortgages to businesses.
B) issuing credit cards.
C) providing capital to finance construction of office complexes.
D) buying and selling securities.
E) issuing loans to fund college education.

Question 33

Which of the following service sector workers is MOST likely to be a member of a labor union?

A) cashier
B) janitor
C) restaurant server
D) lawyer
E) teacher

Question 34

Which country pays more per capita on health care?

A) Japan
B) Germany
C) United Kingdom
D) U.S.
E) China

Question 35

The industry with the highest percent of women as a percent of the labor force is

A) personal services
B) entertainment and recreation
C) educational
D) social services
E) private households

Question 36

According to your text book,about what percentage of new jobs are concentrated in services?

A) 10%
B) 25%
C) 50%
D) 60%
E) 90%

Question 37

In the U.S.,what percentage of a households expenditures are spent on services?

A) 10%
B) 25%
C) 40%
D) 50%
E) 75%

Question 38

Which of the following statements about the services labor market is most accurate?

A) Wages and salaries in services are low across the board.
B) There is strong motivation to mechanize services when wages are low.
C) The demand for health care professionals is falling.
D) Services tend to be labor intensive.
E) A large share of new service jobs offer good benefits.

Question 39

What strategy is used to minimize costs to large firms during economic downturns and periods of restructuring?

A) Relying on in-house staff
B) Externalization
C) Downsizing
D) Deregulation
E) Internalization

Question 40

Which of the following cities is LEAST likely to generate a large amount of jobs and revenues from service exports?

A) New York City
B) London, England
C) Cincinnati, Ohio
D) Tokyo, Japan
E) Paris, France

Question 41

The Great Depression of the 1930s gave rise to

A) World War I.
B) the increase in regulation of the finance industry in the U.S.
C) The OPEC oil embargo.
D) the rise of the services economy.
E) all of the above.

Question 42

Which of the following is NOT a characteristic of the geography of legal services in the U.S.?

A) high degree of spatial agglomeration
B) high degree of functional agglomeration
C) close interaction with clients
D) close interaction with suppliers
E) prevalence of suburban locations

Question 43

Most companies have an annual audit undertaken by a professional accountant because

A) it is a tax-time ritual.
B) it is a legal requirement.
C) membership in industry groups requires it.
D) this is how firms know how to value their stocks.
E) all of the above

Question 44

What sector of the service industry is most heavily regulated?

A) Finance
B) Retail
C) Restaurants
D) Education
E) Computer support

Question 45

Accountants and lawyers cluster in world cities because

A) many large corporation headquarters are located in world cities.
B) because world cities are major centers of finance.
C) banks, insurance companies, and specialized financial institutions are clustered in world cities.
D) all of the above
E) A and C only

Question 46

All of the following were consequences of the deregulation of finance in the U.S.EXCEPT

A) the formation of the World Bank and International Monetary Fund.
B) it increased competition in the banking industry.
C) bank transferred their assets to more high-risk/high-return opportunities.
D) because Savings and Loan institutions could now invest in commercial real estate, construction in the sector soared.
E) other entities besides banks could issue their own credit cards for the first time.

Question 47

A radically different environment has faced the banking system since the 1970s and 1980s.Reasons for this include all of the following EXCEPT

A) the Bretton-Woods agreement was reinstated.
B) the shift to floating monetary exchange rates.
C) rising debt levels in the developing world.
D) the advent of electronic funds transfer systems.
E) mounting international competition.

Question 48

________ of all banks in the U.S.own ________ of all bank assets.

A) 10%; 40%
B) 2%; 50%
C) 50%; 75%
D) 6%; 25%
E) 2%; 75%

Question 49

Large law firms with a long history of service to corporate clients are best positioned to engage in international practice because

A) of the low start up costs.
B) services must be offered directly from their headquarters.
C) globalization of legal services has proceeded more slowly than other services.
D) size is a key asset in foreign markets for a variety of reasons.
E) none of the above

Question 50

The largest concentrations of finance employees are located in which four U.S.metropolitan areas?

A) Boston; NYC; Los Angeles; Atlanta
B) Boston; NYC; San Francisco; Los Angeles
C) Dallas; Atlanta, NYC; Boston
D) San Francisco; Los Angeles; Dallas, NYC
E) Dallas; San Francisco; Boston; NYC

Question 51

Which of the following statements about the Federal Reserve is FALSE?

A) It was created in 1913.
B) It consists of 12 Federal Reserve Banks.
C) It was created to regulate the U.S. money supply.
D) Its chair is chosen by a committee comprised of representatives from the 12 Reserve Banks.
E) It has several mechanisms for managing interest rates and the money supply.

Question 52

The causes of the Financial Crisis of 2007-2009 include all of the following EXCEPT

A) deregulation of the financial industry.
B) high levels of U.S. and household debt that had been accumulating for decades.
C) the Federal Reserve kept interest rates extremely low.
D) predatory lending for "sub prime" loans.
E) housing prices rose much faster than household incomes in the 1990s and 2000s.

Question 53

Two-thirds of business and professional service jobs in the U.S.are located in

A) the suburbs.
B) New York City.
C) large urban areas.
D) dispersed medium-sized cities.
E) California.

Question 54

The primary purpose of savings and loans is

A) issuing credit cards.
B) buying and selling securities.
C) providing mortgages to home buyers.
D) providing capital to finance construction of office complexes.
E) issuing loans to fund college education.

Question 55

In general,the more specialized the service,the more likely it is to derive revenues from

A) imports.
B) exports.
C) the government.
D) investments.
E) domestic sources.

Question 56

In the service sector,what type of legal firm dominates?

A) small firms
B) foreign firms
C) midsize firms
D) large firms
E) firms in California

Question 57

Which of the following statements about design companies is FALSE?

A) Services provided by them area an important source of innovation.
B) Services provided by them are an integral part of the production process.
C) Informal and formal networks of small design firms form and can often compete with large design firms because of these networks can be very flexible in the types and range of services they provide.
D) Services provided by them are an integral part of the manufacturing process.
E) They are tasked with altering products to make them more attractive to the customer.

Question 58

Government interventions in the Financial Crisis of 2007-2009 include all of the following EXCEPT

A) the Troubled Asset Relief program (TARP).
B) buying and owning a large share of stocks in many firms.
C) the passing of a congressional "stimulus" package.
D) all of the above
E) none of the above

Question 59

The result of regulation on the banking system in the U.S.was

A) government take-over of the banking industry.
B) centralization of the banking system.
C) creation of a cabinet-level oversight agency.
D) a highly fragmented, decentralized system.
E) creation of an independent industry watchdog group to oversee the banking system.

Question 60

What two institutions were most affected by the deregulation of banking in the U.S.that occurred in 1982?

A) World Bank and International Monetary Fund
B) Commercial Banks and Savings Banks
C) Commercial Banks, and Savings and Loans Institutions
D) Savings Banks and Insurance
E) Credit Unions and Offshore Banks

Question 61

Services sold to and consumed by corporations rather than households are referred to as consumer services.

Question 62

Which types of producer service is least export oriented?

A) advertising
B) engineering
C) real estate
D) transport services
E) banking

Question 63

All of the following are characteristics of medical tourists EXCEPT

A) they are individuals and families of modest means.
B) they are protecting assets from medically necessary operations.
C) they are wealthy individuals looking to avoid hefty co-pays.
D) they are typically middle class.
E) all of the above are characteristics.

Question 64

Even as early as 1910 in the U.S.,services exceeded manufacturing employment.

Question 65

The tourism industry consists of a variety of economic sectors including all of the following EXCEPT

A) international and local transportation.
B) hotels and motels.
C) eating and drinking establishments.
D) entertainment.
E) real estate.

Question 66

Which of the following tasks is a "Back-Office" function?

A) engineering
B) research
C) payroll
D) publicity
E) marketing

Question 67

Which of the following is required in order to support a tourist industry?

A) water system
B) sewage treatment facilities
C) transportation
D) communication
E) all of the above

Question 68

Services represent the tertiary sector of economic activity?

Question 69

Services is also known as the secondary sector of the economy.

Question 70

All of the following are centers of off-shore banking and financial centers,EXCEPT

A) Cayman Islands.
B) France.
C) Bahamas.
D) Panama.
E) Luxembourg.

Question 71

What forms the nervous system of the international financial community by allowing banks to move capital around at a moment's notice?

A) The World Bank
B) The International Monetary Fund
C) The Internal Revenue Service
D) electronic funds transfer systems
E) Western Union

Question 72

Which of the following tasks is a "Headquarters" function?

A) engineering
B) data entry
C) payroll
D) insurance claims
E) magazine subscriptions

Question 73

Since the shift to floating exchange rates,what activity has become a big business?

A) international stock markets
B) purchases using the internet
C) trading in currencies
D) international mortgage banking
E) land speculation

Question 74

Which region had the largest share of world total international tourism receipts in 2004?

A) Europe
B) Caribbean
C) The Americas
D) Asia
E) The Pacific

Question 75

Even in most of the developing world,the services labor force comprises a large proportion of the total labor force.

Question 76

Entertainment has a particularly high income elasticity.

Question 77

Factors that shape consumer services include all of the following EXCEPT

A) changing household work patterns.
B) regulatory frameworks.
C) relative prices of imports and other goods.
D) the location of different types of purchasing power.
E) mass tourism.

Question 78

The securitization of finance and the investments created by it,unlike FDI,

A) tend to create few jobs.
B) are invisible to all but a few agents.
C) act on a short-run with unpredictable consequences.
D) are often provided by non-traditional suppliers.
E) all of the above

Question 79

What is the major attraction of offshore banking in the Caribbean?

A) a free gift with every new account
B) specialized services that are confidential and tax-exempt
C) many branches, convenient locations
D) personalized banking
E) All of the above

Question 80

What is the major predictor for the international outsourcing of back-office work by U.S.firms?

A) low wages
B) nearby location
C) international labor agreements and treaties
D) availability of fluent speakers of English
E) efficient transportation systems