B.E. 2.03, 2.04, and 2.05 Review

The economic system that adopts the fewest new ideas or improvements is:

• communist.

• market.

• socialist.

• traditional.

In a socialist economy, what determines how basic economic questions are answered?

• government

• products

• resources

• retailers

What economy is based on public or governmental ownership of the production and distribution of goods?

• capitalist

• mixed

• socialist

• traditional

Under which type of economy does the government own the basic means of production, but with some private ownership of businesses?

• command

• communism

• entrepreneurship

• socialism

What is the economic basis for the private enterprise economic system?

• competition

• the marketplace

• the motive of profit

• manufacturer supply chain

Which factor is a barrier to small-business and entrepreneurial success?

• poor management

• no vision or expansion

• having a clear strategic vision

• having a surplus of employees

A small business is defined as a business employing fewer than how many people?

• 500

• 750

• 1000

• 1500

A business decides against opening a store in the next town because its research shows the location will be unprofitable. What form of risk management is this?

• avoidance

• reduciton

• retention

• transfer

What is the name for markets with only a few sellers, such as the markets for automobiles, pharmaceuticals, or oil?

• oligopolies

• monopolies

• perfect competition

• monopolistic competition

Competition helps create a healthy society by:

• creating new jobs

• increasing the money supply

• making new government regulations

• replacing small businesses with large businesses.