Business and Economics Quiz

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?

• transfer

• reduction

• avoidance

• retention

What do service businesses sell?

• wholesale goods and services

• raw goods and services

• retail goods and services

• intangible goods and services

The two main divisions of the trade industry are:

• manufacturers and wholesalers

• wholesalers and producers

• wholesalers and retailers

• producers and retailers

Competition helps create a healthy society by:

• making new government regulations

• creating new jobs

• replacing small businesses with large businesses

• increasing the money supply

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

• oligopolies

• monopolies

• monopolistic competition

• perfect competition

A large retailer wants to contribute to the well-being of society. It donates 10% of its proceeds to a charity that helps the environment. The retailer is demonstrating:

• social responsibility

• wholesaling

• voluntary merchandise

• e-tailing

A business that buys goods or services and sells them to the ultimate consumer is a:

• manufacturer

• producer

• wholesaler

• retailer

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

• manufacturer supply chain

• the motive of profit

• the marketplace

• competition

The Candy Store is selling more and more chocolate each quarter. Applying the law of supply and demand, what is most likely to happen over the next few quarters?

• The price will increase, and the supply will increase.

• The price will decrease, and the supply will decrease.

• The price will increase, and the supply will decrease.

• The price will decrease, and the supply will increase.

Economic resources that help people be more productive are:

• nonrenewable resources

• capital goods resources

• natural resources

• human resources