Module 2 Test Business Essentials

What do service businesses sell?

• raw goods and services

• retail goods and services

• intangible goods and services

• wholesale goods and services

The economic resource where people work to produce goods or services are:

• capital goods.
• human resource

• natural resources

• noneconomic goods

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 increase.

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

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

Competition helps create a healthy society by:

• creating new jobs.

• increasing the money supply.

• making new government regulations.

• replacing small businesses with large businesses.

New Gear studied trends in the marketplace to price their jerseys. There was an abundance of jerseys remaining after meeting the demand creating which market condition?

• equilibrium

• rationing

• shortage

• surplus

A characteristic of a seller's market is:

• lower profits

• higher prices

• larger supply

• smaller demand

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

• manufacturer

• producer

• retailer

• wholesaler

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

• reduction

• retention

• transfer

A form of demand for products in which changes in price correspond to changes in demand is:

• consumer

• elastic

• equilibrium

• inelastic

To prepare for effective decision-making that ensures the efficient delivery of products to the marketplace, one should study:

• marketing

• economics

• job outlooks

• supply chains