1. Questions

Business and Labor Unit Test

1 Which of the following benefits do sole proprietors enjoy? Choose the two correct answers. (1 point)

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Control of decision making********

Unlimited liability

low regulatory effort *************

limited liability *************

2 What are the main responsibilities of shareholders in a corporation?(1 point)

Hire management to monitor production

Provision of own labor for the production process

Election of the board****************

Production monitoring

3 brother, that’s just 20 seconds max

The business is not making a profit.

4 You recently discovered that a local business was identified as 501(c)(3). Which of the following statements must be true? (1 point)

The company is a private foundation.

The company is non-profit.

The company has federal tax exemptions.************

The business is not making a profit.

5Which of the following advantages do franchisees enjoy over other small business owners? Choose the two correct answers. (1 point)

Franchisees benefit from successful marketing by franchisors.****************

Franchise companies are less expensive to run than other small businesses.

Franchise companies have lower startup costs than other small businesses.

Franchises have a lower 5-year failure rate than other small businesses.************

Franchise companies have more control over the goods and services they offer.

6 Which of the following statements could explain the relatively high wages of certain medical professionals, such as nurses and doctors?(1 point)

The training and certifications required for these jobs result in a relatively high labor supply for a given wage.

The training and certification required for these jobs results in a relatively small amount of labor being provided at any given wage.************

The training and certification required for these jobs result in a relatively small amount of labor being provided at any given wage.

The aging of our population results in a relatively low demand for labor for a given wage.

The aging of our population results in a relatively high supply of labor at a given wage.

7 Bureau of Labor statistics identify an occupational trend in the medical labor market, where wages have increased significantly in recent years. As a result of this observed occupational trend, more people within the economy are entering the labor market. How does this affect wages and employment in the labor market?(1 point)

The market equilibrium wage will decrease and the equilibrium labor quantity will decrease.*********

The market equilibrium wage will fall and the equilibrium amount of labor will increase.

The market-equilibrium wage will rise and the equilibrium amount of labor will fall.

The market equilibrium wage will increase and the equilibrium labor quantity will increase.

8 What do union leaders and management agree to in arbitration? (1 point)

negotiate with each other and understand that the union reserves the right to make binding decisions on both parties

negotiate with each other and understand that management reserves the right to make binding decisions on both parties

involve a third party in their negotiations who is able to make binding decisions

How many signers of the Declaration of Independence became President?

involve a third party in their negotiations who will help them negotiate but not have the power to make binding decisions ***********

9 Which of the following statements describes the main difference between craft and industrial unions?(1 point)

Workers in a specific trade, not an entire industry, form an industrial union.

Workers from labor-intensive sectors (such as manufacturing and agriculture) form craft unions, not industrial unions.

Employees of a specific trade, not an entire industry, form a craft union.********

Workers from labor-intensive sectors (such as manufacturing and agriculture) form industrial unions, not craft unions.

10 Explain one way in which hiring an additional worker could lead to an increase in human capital.(1 point)

Hiring an additional worker could result in an increase in human capital if the worker would bring new skills and experience that can be taught to other workers.

Hiring an additional employee could lead to an increase in human capital if the company were able to benefit from the new employee’s productivity.

Simply hiring an additional worker leads to an increase in human capital.

Hiring an additional worker could lead to an increase in human capital if the worker were able to produce more output per hour worked than other workers.*****

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