BUSN 101 Test practice

The total amount of money an employee receives before taxes and deductions.

• Net pay

• Pay check

• Gross pay

• Pay stub

Which of the following best describes what we mean by resources in economics?

• Natural resources like natural gas and trees

• The factors used to produce goods and services

• Human resources like workers

• The ability to handle a situation

When a motorcycle manufacturer announces that it will no longer make its most popular model of bike, what do you think will happen to the price of the bike?

• Increase

• Decrease

• Stay the same

The money a company receives by providing services or selling goods to customers.

• costs

• profit

• revenue

Which is not a factor of production?

• labor

• natural resources

• capitol

• non-profit

What is the best definition of economics?

• The study of how governments make decisions regarding public policy

• The study of how businesses make money

• The study of human society

• The study of how society's scarce resources are allocated

What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?

• leading economic indicator

• full employment

• unemployment rate

• Structural employment

Inflation is the general increase in price levels.

• T

• F

A shortcoming of using Gross Domestic Product (GDP) as a measure of the economy, is that it does not include work done at home such as hose renovations.

• T

• F

Which best describes Gross Domestic Product (GDP)?

• monetary value of all final goods and services produced within a nation in a particular year

• national income minus all non-income charges against output

• monetary value of all economic resources used in producing a year's output.

• monetary value of all goods and services, final and intermediate, produced in a specific year.