Business and Economic Performance Quiz

What are the advantages of a sole proprietorship?

• Limited liability and shared decision-making

• Full control and easy start-up

• Unlimited liability and easy start-up

• Unlimited liability and shared decision-making

What is the main characteristic of a partnership?

• Limited liability

• Unlimited liability

• Shared decision-making

• Easy start-up

What is a disadvantage of a corporation?

• Limited liability

• Double taxation

• Easy start-up

Which market structure has many buyers and sellers, identical products, and no barriers of entry?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

In which market structure do sellers compete through non-price competition?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

What type of market structure has extreme control over price and no substitute product?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

What is the formula for calculating GDP?

• C+I+G+(X-M)

• C+I+G

• C+G+(X-M)

• C+I+(X-M)

What does inflation refer to?

• Rise in general price level of goods and services

• Decrease in general price level of goods and services

• Rise in unemployment rate

• Decrease in unemployment rate

How is the unemployment rate calculated?

• Number of unemployed persons divided by total population

• Number of unemployed persons divided by civilian labor force

• Number of employed persons divided by total population

• Number of employed persons divided by civilian labor force

What is a key advantage of a sole proprietorship?

• Shared decision-making

• Double taxation

• Easy start-up

• Unlimited liability