Business and Everyday Life

What is the primary purpose of a business in a capitalist economy?

• To provide jobs

• To maximize profits

• To serve the community

• To innovate

Which of the following is a key characteristic of a market economy?

• Government control of resources

• Private ownership of property

• Central planning

• Fixed pricing

What is the term for a market structure with only one seller?

• Monopoly

• Oligopoly

• Monopsony

• Perfect competition

Which of the following is an example of a public good?

• A private school

• A national defense system

• A local grocery store

• A corporate office

What is the role of an entrepreneur in the economy?

• To regulate markets

• To provide capital

• To innovate and take risks

• To enforce laws

Which economic system is characterized by collective ownership of resources?

• Capitalism

• Socialism

• Feudalism

• Mercantilism

What is the main function of money in an economy?

• To act as a store of value

• To provide entertainment

• To create wealth

• To enforce laws

Which of the following is a characteristic of a traditional economy?

• Innovation and change

• Barter and trade

• High technology use

• Centralized decision making

What is the term for the total value of goods and services produced in a country?

• Gross Domestic Product

• Net National Product

• Consumer Price Index

• Balance of Trade

Which of the following is a factor of production?

• Labor

• Currency

• Technology

• Government