Unit 2: Quiz 3 "Practice Questions"

Complete the sentence:

Costs that stay the same regardless of how much of a good or service is produced are _____.

• fixed costs

• opportunity costs

• variable costs

• none of the above

Complete the sentence:

Costs that change with increases and decreases in the amount produced are _____.

• fixed costs

• opportunity costs

• variable costs

• none of the above

Complete the sentence:

Costs of selecting one opportunity or investment over another are _____.

• fixed costs

• opportunity costs

• variable costs

• none of the above

Complete the sentence:

Materials are an example of _____.

• fixed costs

• opportunity costs

• variable costs

• none of the above

Complete the sentence:

Choosing to go to college over getting a job right out of high school is an example of a(n) _____.

• fixed costs

• opportunity costs

• variable costs

• none of the above

Complete the sentence:

Rent is an example of a(n) _____.

• fixed costs

• opportunity costs

• variable costs

• none of the above

Complete the sentence:

The desire to earn a profit is called _____.

• smart decision making

• profit motive

• business

• entrepreneurship

Match the action needed to increase profits with the reason a business might fail.
To become successful, this small business owner needs to find a way to distinguish her company from other companies, offering something special to customers.

• competition

• finances

• poor management

• bad location

Match the action needed to increase profits with the reason a business might fail.
A small company, especially a store, usually has a better chance of succeeding if it is in an area with other businesses because it can draw in new customers.

• competition

• finances

• poor management

• bad location

Match the action needed to increase profits with the reason a business might fail.
Advertising the company to potential customers would match with_____.

• competition

• finances

• poor management

• bad location