BF10 Study Guide Unit 2

When Ja'Neithia and Ryan are working faster or better, they are increasing their

• wages

• benefits

• value

• efficiency

Answer explanation

When Ja'Neithia and Ryan are working faster or better, they are increasing their efficiency.

Erin's business was destroyed by a hurricane. This is an example of a(n) _______ risk.

• operational

• financial

• strategic

• hazard

Answer explanation

Erin's business being destroyed by a hurricane is an example of a hazard risk, as it is caused by an external event beyond her control.

Erin, Zachariah, and Ke'Von were discussing different types of industries. They mentioned the automobile industry, the pharmaceutical industry, and the oil industry as examples of

• market structures

• perfect competition

• oligopolies

• monopolistic competition

Answer explanation

Erin, Zachariah, and Ke'Von mentioned industries with few large firms, indicating oligopolies.

What motivates Jayden and Eileen to produce efficiently and sell effectively in their lemonade stand business?

• The desire to spend money

• The hope of making a profit

• The need for recognition

• The chance to start a trend

Answer explanation

Jayden and Eileen are motivated to produce efficiently and sell effectively in their lemonade stand business because they hope to make a profit.

Irvin and Brooklyn are discussing how a gap between unlimited wants and limited resources creates

• economics

• resources

• wants

• scarcity

Answer explanation

The correct choice is 'scarcity' because the gap between unlimited wants and limited resources is what creates scarcity in economics.

Seeing a movie at a theater would be considered a(n) _______ want.

• economic

• unlimited

• limited

• non-economic

Answer explanation

Seeing a movie at a theater would be considered a limited want because resources like time and money are finite, making it a choice with constraints.

Jayden and Peyton are working on a school project. Which of the following represents a primary business activity?

• Scheduling

• Designing

• Marketing

• Supervising

Answer explanation

Marketing is a primary business activity involving promoting and selling products or services. Scheduling, designing, and supervising are important but not primary business activities.

Erin and Michael are discussing market structures. Which of the following statements about perfect competition is correct:

• There is a limited supply of goods and services.

• Businesses have a good deal of control over the market.

• Products vary from seller to seller.

• It is used as a benchmark to compare real market structures against.

Answer explanation

Perfect competition is used as a benchmark to compare real market structures against.

Brooklyn and Irvin are running an online store. They decide to offer high quality, large assortments, and free shipping. These are examples of

• rebates

• nonprice competition

• price fixing

• price competition

When Michael's business keeps a risk because management is unaware of it, the business is _______ the risk.

• avoiding

• preventing or controlling

• retaining

• transferring