Principles of Business Form 4 Practice Quiz No. 2

Barter can be defined as:

• The purchase of goods on hire purchase

• The Exchange of goods for money

• The exchange of goods for goods

• The earning of foreign exchange through export

A consumer is a person who:

• Uses goods and services produced by other people

• Is an economic animal

• Produces the goods they need

• Buys for re-sale

In most Caribbean countries the predominant type of economic system is:

• Laissez-Faire

• Centrally Planned

• Socialist

• Mixed

An economic system where producers and consumers are the main decision makers is called:

• Traditional economy

• Planned economy

• Free Market economy

• Mixed economy

A system of trading where goods are exchanged for other goods are called:

• Double coincidence of wants

• Barter

• Rate of exchange

• Division of labour

In a planned economy, resources are allocated based on the decisions made by:

• Consumers, producers and government

• Producers

• Government

• Consumers and producers

In which type of economy is demand and supply used to determine price?

• Mixed

• Both planned and Mixed

• Free Market economy

• Planned

Which of the following is NOT a function of money?

• Measure of value

• Medium of exchange

• Not divisible

• Store of Value

Which of the following commercial organisations might any member of the public be allowed to purchase shares?

• Government agency

• The Central Bank

• Co-operatives

• Limited liability Corporation

In a public limited company, losses are incurred by:

• Shareholders

• Community

• Employees

• Directors