REVIEW ASAT

The main function of companies is to give work to the population.

• True

• False

In the circular flow of income there are two flows: one of money and another of goods and services and factors of production.

• True

• False

Companies calculate their business profits through the difference between income and expenses.

• True

• False

The amount of demand that is greater than the supply on the world market will encourage the exporting country...

• withhold delivery of goods

• lower the price of goods

• raise the price of goods

• cancel the purchase of goods

What is the barter system?

• A system where goods and services are exchanged for money

• A system where goods and services are exchanged directly without the use of money

• A system where money is exchanged for goods and services

• A system where goods and services are exchanged through a centralised market

Which of the following is an advantage of the barter system?

• Difficulty in finding someone with the desired goods or services

• Lack of a standardised measure of value

• Limited options for exchanging goods and services

• Exchange of physical goods; no "trust" required

What are the characteristics of money?

• Durability, portability, divisibility, scarcity and responsibility

• Durablility, portability, homogeneity, divisibility and acceptability

• Durability, portability, scarcity, beauty and acceptability

• Durability, divisibility, scarcity, homogeneity and acceptability

Which of the following is an example of commodity money?

• Salt

• Paper money

• Credit cards

• Digital currencies

What is the main advantage of using commodity money?

• It is easily divisible

• It is widely accepted

• It has intrinsic (natural/in-built) value

• It is easy to carry

“Fiat” money is currency trusted and valued by people because the government says so. Which of the following is an example of fiat money?

• Gold coins

• Silver bars

• Paper money

• Cryptocurrency