UNDERSTANDING ECONOMIC SYSTEMS & BUSINESS

Which of the following is an example of a business?

• Jack & Jill, a specialty clothing store for young children

• Wal-Mart

• Lawson & Tyler Law Offices

• All of the above

Which of the following is the best example of a service?

• the pleasure you derive from seeing a good play

• the license tags you purchased for your car

• the hamburger you bought for lunch

• the gallon of milk you purchasd at the convenience store

Which of the following is the best example of a good?

• the physical examination you received from your doctor

• the birthday candles you purchased to go on your sister's birthday cake

• the airplane flight you took to attend a funeral

• the driving lessons you took.

Which of the following businesses provides its customers with a service

• a pecan grower

• a wheat farmer

• a mattress manufacturer

• a law office

What is the primary difference between a good and a service

• A good costs more to produce that a service.

• A service is tangible and a good is intangible.

• A good is tangible and a service is intangible.

• A good costs more to market than a service.

The _____________ of any country is measured by the output of goods and services people can buy with the money the have.

• standard of living

• consumer productivity

• input per person

• quality of life

Which of the following countries has a high standard of living?

• Malaysia

• the United States

• Gautemala

• Nigeria

The standard of living is low in Honduras. This means

• it has a positive balance of trade

• it has higher wages than the US

• its citizens cannot afford to buy much

• itt attracts risk-aversive entrepreneurs

The quality of life is

• measured by subtracting the supply of goods and services from the demand for goods and services.

• determined by the money left over after all expenses are paid

• the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation and leisure time.

• measured by the output of goods and services people can buy with the money they have.

Which of the following is the BEST example of a not-for-proft business?

• the American Cancer Society

• McDonalds

• Kelloggs

• FedEx