Business Fundamentals Assessment

What are the four main types of economic systems?

• traditional, command, market, mixed

• capitalist, barter, socialist, feudal

• planned, informal, cooperative, transitional

• autocratic, democratic, oligarchic, anarchic

How does a market economy differ from a command economy?

• A market economy is entirely controlled by the government.

• A market economy relies on individual choices and market forces, while a command economy is centrally planned by the government.

• A command economy allows for free market competition.

• A market economy eliminates all forms of government intervention.

What is GDP and why is it important in measuring economic performance?

• GDP is the total amount of money in circulation within a country.

• GDP measures only the wealth of the richest citizens in a country.

• GDP is a measure of a country's population size.

• GDP is the total value of goods and services produced in a country, and it is important for measuring economic performance.

Define inflation and its impact on the economy.

• Inflation is the decrease in prices and increase in purchasing power.

• Inflation has no effect on economic growth or stability.

• Inflation only affects the stock market and not the overall economy.

• Inflation is the increase in prices and decrease in purchasing power, impacting economic growth and stability.

What are the key indicators used to assess economic health?

• Government debt levels

• Stock market performance

• Interest rates

• GDP growth rate, unemployment rate, inflation rate, consumer confidence index, trade balance

Explain the concept of Corporate Social Responsibility (CSR).

• CSR is solely about maximizing profits for shareholders.

• Corporate Social Responsibility (CSR) is the commitment by businesses to conduct themselves ethically and contribute to economic development while improving the quality of life of the workforce, their families, the local community, and society at large.

• CSR involves only legal compliance without ethical considerations.

• CSR is a marketing strategy to improve brand image without real impact.

How can businesses demonstrate ethical practices?

• Avoid any form of community engagement.

• Focus solely on profit maximization.

• Get stakeholder feedback.

• Implement transparent policies and engage in sustainable practices.

What role do government policies play in economic systems?

• Government policies have no impact on economic systems.

• Government policies play a crucial role in shaping economic systems by regulating markets, providing public goods, and stabilizing the economy.

• Government policies only benefit large corporations.

• Government policies are solely focused on taxation.

What is the significance of unemployment rates as an economic indicator?

• Unemployment rates measure the total number of job openings available.

• Unemployment rates serve as a key indicator of economic health and labor market conditions.

• Unemployment rates reflect consumer spending habits in the market.

• Unemployment rates indicate the level of inflation in an economy.

How can businesses balance profit-making with social responsibility?

• Integrate sustainable practices and ethical sourcing while investing in community development.

• Focus solely on maximizing shareholder profits.

• Outsource all production to reduce costs without considering ethics.

• Ignore community needs and environmental impact.