SEM Chapter 2 TEST

The study of economics of the entire society is referred to as

• macroeconomics

• microeconomics

• economic utility

• social economics

Risks can be classified as controllable, insurable, and involving gain or losses.

• True

• False

Forecasting involves

• purchasing and promotion

• pricing and ticket sales

• predicting costs and revenue

• planning, distribution, price and advertising

Worldwide distribution revenue is critical for movie profits.

• True

• False

The greatest reason for being in business is

• the challenge

• the profit motive

• the tax write off

• the lack of competition

Movie ticket sales in the United States have increased each year for more than a decade.

• True

• False

_____________ is the possibility of financial gain, loss, or personal injury.

• Insurance

• Risk

• Risk transfer

• Liability

A perception exists among the general public that sports and entertainment celebrities no longer value ethics.

• True

• False

Bringing a new professional team to a major city is an example of

• a speculative risk

• a controllable risk

• an insurable risk

• an uncontrollable risk

Because people have limited time and money to spend on entertainment, they must make decisions about how to spend their limited resources.

• True

• False