Final Exam Review - Business & Economy

What is the primary purposes of a business? (HINT: There are two answers.) Check all that apply.

• To make money for the owners

• To provide goods and services to a market

• To employ as many people as possible

• To grow as large as possible

Which of these is an example of a 'service' provided by a business? Mark only one oval.

• Selling shoes

• Manufacturing computers

• Cutting hair

• Growing apples

Which market type is historically based on local custom and culture? Mark only one oval.

• Free market

• Command market

• Mixed market

• Traditional market

In a 'free market' system, who primarily determines prices? Mark only one oval.

• The government

• The business owners based on supply and demand

• The consumers

• A central planning committee

Which market type combines elements of both free and command markets? Mark only one oval.

• Traditional market

• Free market

• Command market

• Mixed market

Which economic system has private ownership of businesses and pricing based only on supply and demand? Mark only one oval.

• Capitalism

• Socialism

• Communism

• Mixed economy

What is the main difference between a 'want' and a 'need'? Mark only one oval.

• Wants are essential for survival, needs are not

• Wants are required for life, needs are optional

• Wants are nice to have, needs are required for survival

• Wants are determined by the government, needs are determined by the individual

What does 'supply' refer to in economics? Mark only one oval.

• The amount of money available

• The number of items available for sale

• The demand for a product

• The quality of goods

What is a Sole Proprietorship? Mark only one oval.

• A business owned by one person

• A business owned by two or more people

• A government-owned business

• A non-profit organization

What is a Mixed Market? Mark only one oval.

• A market with no government involvement

• A mixes parts of Free and Command Markets

• A market based solely on barter

• A market that only sells goods