BF10 Unit 2 Test

Front

When employees are working faster or better, they are increasing their

Back

efficiency.

Answer explanation

When employees work faster or better, they enhance their efficiency, which refers to the effectiveness of their work processes. This leads to improved productivity and overall performance.

Front

The automobile industry, the pharmaceutical industry, and the oil industry are all examples of

Back

oligopolies.

Answer explanation

The automobile, pharmaceutical, and oil industries are examples of oligopolies, where a few firms dominate the market, leading to limited competition and significant market power.

Front

What motivates businesses to produce efficiently and sell effectively?

Back

The hope of making a profit

Answer explanation

The hope of making a profit drives businesses to produce efficiently and sell effectively, as profitability is essential for sustainability and growth.

Front

A gap between unlimited wants and limited resources creates

Back

scarcity.

Answer explanation

A gap between unlimited wants and limited resources leads to scarcity, which is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Front

Seeing a movie at a theater would be considered a(n) __________ want.

Back

economic

Answer explanation

Seeing a movie at a theater is a choice that involves spending money, making it an economic want. Economic wants are those that require resources to fulfill, unlike unlimited wants which cannot be satisfied.

Front

Which of the following represents a primary business activity? Scheduling, Designing, Marketing, Supervising

Back

Marketing

Answer explanation

Marketing is a primary business activity focused on promoting and selling products or services. In contrast, scheduling, designing, and supervising are supportive functions that assist in the overall business process.

Front

Which of the following statements about perfect competition is correct:
- There is a limited supply of goods and services.
- Businesses have a good deal of control over the market.
- Products vary from seller to seller.
- It is used as a benchmark to compare real market structures against.

Back

It is used as a benchmark to compare real market structures against.

Answer explanation

The correct statement is that perfect competition serves as a benchmark to compare real market structures. In perfect competition, there is an infinite supply of identical products, and firms have no control over the market.

Front

Offering high quality, large assortments, and free shipping are examples of

Back

nonprice competition.

Answer explanation

Offering high quality, large assortments, and free shipping are strategies that focus on attracting customers without altering prices, which defines nonprice competition. This approach emphasizes value and service over price.

Front

The heart of economics is

Back

decision making.

Answer explanation

The heart of economics is decision making, as it involves choosing among alternatives based on limited resources and competing wants. This process of making choices is fundamental to understanding economic behavior.

Front

What are the three basic economic questions?

Back

What products will be produced, how will products be produced, and how will products be allocated.

Answer explanation

The correct choice identifies the three fundamental economic questions: what products will be produced, how they will be produced, and how they will be allocated. These questions address resource allocation in an economy.