Entrepreneurship Ch.2

Which of the following is a problem a nation might attempt to solve through its economic systems?

• limited supply of goods and services
• democracy
• entrepreneur's profit motive
• all of the above

The equilibrium price is

• the price set by the government
• the price at which supply equals demand
• the price at which exports equal imports
• the price set by the foreign exchange rate

Profit is beneficial to entrepreneurs because

• profit builds wealth and financial independence
• profit is the equilibrium  quantity on a supply and demand curve
• profit is a barrier to international trade
• profit is the answer to one of the fundamental question of economics

A market economy is also called

• socialism
• capitalism
• free enterprise
• b and c

The profit motive is

• the money left over after the expense are subtracted from sales
• the economics of one unit
• a reason entrepreneurs take on business risks
• profit calculated as a percentage of expenses

Which of the following statements about competition is false?

• competition motivates entrepreneurs to introduce new products to  consumers
• competition between suppliers drives prices upward
• competition between consumers benefits suppliers
• competition occurs between suppliers and between consumers

Importing and exporting are activities primarily associated with

• nonprofit organizations
• the profit motives
• the economics of one unit
• the global economy

The economics of one unit is a calculation of 

• the equilibrium quantity on a supply curve
• how many items an entrepreneur has for sale
• the profit or loss associated with a unit of sale
• foreign demand for an entrepreneur's product

The United States economy is best described as 

• a pure market economy in which the government plays no role in the economy
• a pure command economy in which the government controls the economy
• a mixed economy in which suppliers and consumers play the primary role
• a socialist economy in which suppliers and consumers play the primary role

Which of the following challenges poses a business risk to entrepreneurs who want to conduct international trade?

• tariffs that must be paid to import goods
• cultural differences between nations
• trade barriers
• all of the above