BusFin Chapter 2 Practice Test

Who makes economic decisions in a market economy?

• The government

• The people

• The businesses

• The people and the businesses

Which of the following is not a category of economic resources?

• political

• human

• capital

• natural

a profit earned from an investment.

• Financial return
• Economics
• Exchange rate
• Financial risk
• Foreign currency

the possibility that an expected profit will not be achieved.

• Financial risk
• Economics
• Exchange rate
• Financial return
• Foreign currency

the length of time invested money is controlled by others

• Term
• Economics
• Exchange rate
• Financial return
• Financial risk

the currency of another country

• Foreign currency
• Economics
• Exchange rate
• Financial return
• Financial risk

the science of decision making about the allocation of scarce resources.

• Economics
• Exchange rate
• Financial return
• Financial risk
• Foreign currency

the value of one currency in terms of another

• Exchange rate
• Economics
• Financial return
• Financial risk
• Foreign currency

The allocation of scarce resources is the primary concern of _______________.

• government

• economics

• supply and demand

• the IRS

Man-made products are an example of which type of resource?

• Capital resources
• Human resources
• Natural resources