Business and Economics Quiz

__________ is the amount a business earns after deducting what it spends for salaries and other expenses.

• Profit

• Revenue

• Interest

• Dividends

The standard of living for a nation's people depends mainly on

• the quality of the natural environment.

• how much political freedom they have.

• their income and the prices of the goods and services they can buy.

• the amount of labor and capital available employed in the manufacturing sector.

Greening refers to

• the need for more carbon dioxide in our air.

• firms acquiring more greenbacks (U.S. dollars) from world trade.

• finding ways to save energy and lessen the harm on our environment.

• the agricultural industry's push to develop and produce new green vegetables to feed the world.

__________ studies the operation of a nation’s economy as a whole.

• Microeconomics

• Socioeconomics

• Econometrics

• Macroeconomics

Adam Smith believed that countries would prosper if businesspeople were free to start and run their own businesses. Businesspeople would make a profit by providing the goods, services, and ideas that others in the economy wanted, and they would hire others to help increase those profits, leading to social and economic benefits for many. This idea was called the

• freedom theory.

• invisible hand.

• spending multiplier.

• demand accelerator.

__________ is the name of an economic system in which all or most factors of production and distribution—such as land, factories, railroads, and stores—are privately owned and operated for profit.

• Socialism

• Capitalism

• Communism

• Collectivism

__________ is the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product.

• Oligopoly

• Monopolistic competition

• Perfect competition

• Monopoly

The total amount of money that businesses take in by selling goods and services is called

• profit.

• revenue.

• loss.

• retained earnings.

The customers, employees, competitors, unions, government leaders, and others who stand to gain or lose by the policies and activities of a business represent the firm's

• market makers.

• economic environment.

• stakeholders.

• social environment.

Three important economic indicators of the United States are the unemployment rate, the price indices, and the

• debt to equity ratio (DER).

• gross resource utilization index (GRUI).

• gross domestic product (GDP).

• gross output (GO).