Unit 1 Test

First and Last Name

Which of the following is an economic want?

• a. Food
• b. Shelter
• c. Smartphone
• d. Clothing

People who purchase goods and services are called?

• a. Customers
• b. Economists
• c. Employees
• d. Business people

An organized way in which a state or nation distributes its resources and provides goods and services to the community is called?

• a. Standard of living
• b. Investment
• c. Economics
• d. Economic system

Labor is:

• a. Raw materials found in nature
• b. Equipment a business uses
• c. Any service a person does for a company
• d. Something we desire but could ultimately live without

Which is an example of an operational business activity?

• a. Repaying debt
• b. Purchasing stock
• c. Administrative duties
• d. Providing loans to customers

What is the role of business in society?

• a. providing products to customers
• b. creating markets
• c. increasing economic benefits
• d. all of the above
• e. creating markets and increasing economic benefits

The concept of business refers to the aspects of making, selling, and providing products in exchange for money.

• True
• False

Goods refer to intangible items that are produced and sold to consumers and Service refers to the performance of a particular task in exchange for money

• True
• False

Which of the following is not an advantage of a corporation?

• a. Limited liability
• b. Capable of raising funds
• c. Corporate by laws
• d. Continued life