Soleproprietorship and Partnership

Multiple Choice

What is the basic economic problem?

• Scarcity of resources
• Abundance of resources
• Lack of demand
• Excessive government intervention

Multiple Choice

What does a consumer's scale of preference represent?

• A list of items ranked from cheapest to most expensive

• A graphical representation of income levels

• The order of importance or preference of goods and services

• The government's preference for certain industries

Multiple Choice

   A new dam is built in Turkey to provide hydroelectric power and a water supply. What is the opportunity cost to the country of building the dam?

• The cost of households and businesses of consuming the water supply

• The benefits foregone from other uses of the money used to pay for the dam

• The cost to consumers of using hydro electric power

• The money used to pay for the construction and running of the dam

Multiple Choice

How is an immediate effect of an increase in unemployment illustrated in a production possibility curve diagram?

• a movement of the production point closer to the curve

• a movement of the production point further inside the curve

• a shift of the production possibility curve inwards

• a shift of the production possibility curve outwards

Multiple Choice

If a planned economy becomes a mixed economy, which industry would be most likely to remain under government control?

• agriculture

• coal mining

•   defense

• motor car production

Multiple Choice

The sum of items divided by number of items is the

• Frequency

• Mean

• Median

• Mode

Multiple Choice

  Producers operating in a free market economy are more efficient as a result of?

• Existence of competition

• The very few number of participants

• The commitment of shareholders

• Government regulation of their activities

Multiple Choice

In recent years more golf courses, which use large quantities of water, have opened in China. What may be the opportunity cost of this?

• cost of water

• loss of farmland

• sales of golf equipment

• wages of golf course staff

Poll

Are You Ready For 2nd Term!!

• Yes

• No

Multiple Choice

What causes economic agents to make choices?  

• Limited needs and wants

• The existence of finite resources

• The existence of free goods

• The market mechanism

Multiple Choice

A government is faced with the choice of spending on either education or health care. Of what is this an example of?

• Conservation of resources

• Monetary policy

• Opportunity cost

• Substitution of factors

Multiple Choice

What is a primary advantage of a sole proprietorship?

• • Shared responsibility

• • Ease of formation

• • Limited liability

• • Access to vast capital

Multiple Choice

Which type of partnership involves partners with varying levels of liability?

• • General partnership

• • Limited partnership

• • Limited liability partnership

• • Joint partnership

Multiple Choice

What legal document outlines the terms and conditions of a partnership?

• • Business contract

• • Deeds of Partnership

• • Memorandum of association

• • Joint venture document