Economic Concepts Quizs

How profit motivates businesses

• Encourages them to improve and grow

• Leads to increased competition

• Reduces operational costs

• Limits innovation

First person to mass produce cars using an assembly line

• Henry Ford

• Thomas Edison

• Ransom E. Olds

• Walter Chrysler

Budget

• An estimate of income and expenses for a set period of time

• A detailed report of past financial performance

• A plan for future investments and savings

• A summary of all financial transactions for a year

Definition of revenue

• Leftover money after expenses

• Total income before expenses

• Money spent on production

• Net profit after taxes

Profit

• Money left after paying all expenses

• Total revenue generated from sales

• Initial investment made in a business

• Amount spent on marketing and advertising

Founder of Amazon

• Jeff Bezos

• Elon Musk

• Bill Gates

• Mark Zuckerberg

Benefits of free enterprise to consumers

• By providing more choices and competition

• By limiting consumer options

• By increasing prices for goods

• By reducing the quality of products

Free enterprise system

• Businesses compete freely

• Government controls all businesses

• Businesses are owned by the state

• All businesses must follow the same rules

Common result of labor

• Production of goods and services

• Increase in unemployment

• Reduction of resources

• Decrease in productivity

Decrease in supply with constant demand

• The price decreases

• The price remains the same

• The price increases

• The quantity supplied increases