Econ 165 Ch. 11

A person living alone or a group of persons occupying a housing unit constitute a _________.

Over the years, the number of households in the United States has been _________, but the average number of persons per household has been __________.

Household income before taxes is termed ________ income and comes from the sale of _________ or from __________ payments.

The main source of income for households is from the sale of ______ resources. Over the years, transfer payments have ________ in importance as a source of income. The largest amount of transfer funda goes to recipients of __________ _________.

In 2006, average household income was approximately $48,201. Households headed by a college graduate averaged ________ than this amount, and households headed by a highschool graduated averaged _______. This illustrates a _______ relatioship between household income and the level of education of the household head.

Most household income is used to ______ goods and services, but household income is also used to pay _______ to the government and can be ______ for future use. Most household purchases are for _______, followed by spending for goods with a short useful life time of more than one year, or _______ goods.

To maximize economic well-being an individual must balance the _____ and _____ of possible atlernative actions and choose the one that adds the ______ amount to total economic satisfaction.

In making spending decisions, an individual tries to find the combination of goods and services that provides the greatest amount of satisfaction, or ______, from a given limited ________.

To maximize the total utility from consuming goods and serviees, an individual must weigh the added _______ received from each additional unit of an item that can be purchased against the ____ of the item. If a person with $20 to spend would receive twice as much utility from a $14 steak dinner as he would from an $8 pasta dinner, then this person would maximize utility by purchasing the ______ dinner.

In making earning decisions, the additional _____ from income gained by working more hours must be balanced against the additional _______ from having to forgo other activities in order to work those extra hours.

There are ______ legal forms of business organization.

A one-owner business is a ________. In this form of business, the owner has _______ liability for the debts of the firm, and may find it difficult to raise large sums of _______ to finance expansion, improvements, and other activities.

An unincorporated busniess owned by two or more persons is a _________. The partner(s) with unlimited liability for the debts of the firm are _______ partners.

A business that has a "life of its own" and acan continue to operate while owners come and go is a ________. In order to form a corporation, a _________ stating details about the nature and purpose of the firm must be obtained.

The owners of a corporation are its __________. If a stock pays a specified dividend to its holder and the holder is paid before holders of other types of stock, it is _________ stock. If there is no specified dividend, it is a _________ stock. Owners of corporation can borrow money on a long-term basis for expansion or other purposes through ___________.

Stockholders ______ a corporation; the board of directors, which is _______ by the stockholders, ________ a corporation; and top management, which is ________ by the board of directors, _________ a corporation.

In the United States, most business firms are organized as _________. However, the majority of business receipts go to ________.

Many businesses are ________ by other businesses. When one firm obtains control of another firm, a ________ or _________ has occurred.

When a corporation acquires another corporation that produces an unrelated product, it is called a ______ merger. When a firm acquires another firm that competes with it, it is called a ______ merger; and when a firm acquires a firm that is a supplier or distributor, it is called a ______ merger.

A corporation that is organized to own the stock of other corporations is a _______ company.

Through the 1980s and 1990s, the number of mergers in the U.S. was high. Ther price tags on many corporate acquisitions are in the _______ of dollars.

In economics, it is generally assumed that the basic objective of a business firm is to _______ its profit or to ______ its loss.

The money that a firm receives from selling its product is called _____. Profit or loss is equal to ______ minus ______. If revenue is greater than costs, the firm is earning a ________; if revenue is less than costs, the firm is sustaining a _______.

Profit goes to proprietors, partners, or ________ in corporations.

There is some controversy surrounding the goal of profit mazimizatioon or loss minimization. Two controversial points regard what exactly is meant by profit ________, and whether a firm may seek alternative ______ in the short run.

The management of a corporation may be motivated to maximize profit in order to satisfy the corporation's _________, or its failure to maintain satisfactory profits may lead to a hostile ________.

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