Principles of Business Unit 3 S2 Final

What is the main purpose of a business?

• To provide jobs

• To earn profit by meeting customer needs

• To pay taxes

• To make regulations

Which of the following is NOT a factor of production?

• Land

• Labor

• Money

• Entrepreneurship

What is the economic term for the next best alternative given up when making a choice?

• Opportunity cost

• Marginal benefit

• Scarcity

• Utility

Which market structure has only one seller and no close substitutes?

• Perfect competition

• Oligopoly

• Monopoly

• Monopolistic competition

If demand increases and supply remains the same, what will happen to the equilibrium price?

• It will decrease

• It will increase

• It will stay the same

• It will become zero

Which equation shows how to calculate profit?

Which of these is a service business?

• Car manufacturer

• Grocery store

• Law firm

• Clothing retailer

What is the main function of management?

• To produce goods

• To organize and coordinate resources to achieve goals

• To sell products

• To provide capital

What is a "market economy"?

• An economy fully controlled by the government.

• An economy where supply and demand set prices and production.

• An economy based on bartering.

• An economy without private ownership.

If a business’s revenue is $50,000 and its expenses are $35,000, what is its profit?

• $15,000

• $85,000

• $35,000

• $50,000