Intro to Business- Unit 3 Topic 3 Test Review

Quinn owns a business that manufactures oil filters for cars and trucks. What role does Quinn’s business play in the economy?

• 
  government

• 
  consumer

• 
  partnership

• 
  producer

Categorize the following as pertaining to either microeconomics or macroeconomics.

Groups:

(a) Microeconomics

,

(b) Macroeconomics

• producers

• poverty

• households

• unemployment

• individuals

• inflation

• businesses

• economic growth

Label the parts of the graph indicated by the hotspots.

a

b

c

d

Demand curve

Quantity

Price

Supply curve

Hugo owns and operates a sole proprietorship where he customizes fire engines for local fire departments. He paints them, adds accessories, and applies each department’s logos to the trucks. He uses a specific shade of red paint on many trucks and has recently had difficulty getting the paint. This has caused a backup in his work and customers are unhappy.

What type of challenge is Hugo facing?

• 
  having problems with suppliers

• 
  identifying customers

• 
  gathering reliable historical data

• forecasting demand

A company that sells fitness trackers has had trouble with the trackers not keeping accurate time and having to be recharged too frequently. This has resulted in an increase in customer returns.

What type of production problem does this illustrate?

• 
  quality problems

• 
  output problems

• 
  management problems

• 
  cost problems

When the new iPhone is first released to the public, many customers are willing and able to purchase this product, even at higher prices then usual.

In this case, the iPhone is in high (a)   with consumers.

Match each cause with its effect.

• 
  price increases (supply)

• demand decreases

• 
  price decreases (supply)

• 
  supply increases

• Price decreases (demand)

• demand increases

• price increases (demand)

• 
  supply decreases

Which of the following pertains to value?

• 
  what buyers pay for a good or service

• does not vary depending on the product and consumer

• 
  determined by buyer

• 
  what buyers receive from a good or service

Roberta sells handmade baby blankets embroidered with a baby’s name. They sell for $65 each. During September, she sold 78 blankets, earning $5,070. What is this total called?

• 
  net income

• 
  total expense

• profit

• 
  gross income

Categorize the following as allowable or non-allowable business expenses.

Groups:

(a) Allowable

,

(b) Non-Allowable

• insurance on equipment

  
  

• payment to yard service for home lawn

• household grocery bill

• payroll for employees

• homeowner’s insurance

• factory utility cost