Business Quiz

What is the primary purpose of business activity?

• To employ as many people as possible.

• To combine factors of production to satisfy people's needs and wants.

• To generate as much profit as possible.

• To produce goods and services for the government.

Which of the following is considered a "need"?

• A luxury house.

• A new iPhone.

• Clean water.

• A new car.

The concept of scarcity arises from which of the following?

• The government printing too much money.

• Unlimited wants and limited resources.

• Too many businesses in the market.

• Low wages for workers.

Which of the following is NOT one of the four factors of production?

• Land.

• Labor.

• Money.

• Enterprise.

What is the opportunity cost of a government choosing to build a new road?

• The cost of the materials for the road.

• The wages of the construction workers.

• The next best alternative, such as a new school, that was given up.

• The taxes collected to pay for the road.

What does the term "land" refer to as a factor of production?

• Only the physical ground on which a business is built.

• All natural resources provided by nature, including fields and forests, oil, gas, metals and other minerals.

• The machinery and equipment used in a factory.

• The total number of employees in a company.

Who are entrepreneurs?

• People who work in government-owned businesses.

• Workers who specialize in a single task.

• The person who combines the factors of production to create a good or service.

• Individuals who only invest capital in a business.

Specialization is important for businesses because it helps to:

• Increase the number of products a business sells.

• Ensure all workers can perform every task.

• Use resources in the most efficient way possible.

• Reduce the need for machinery.

The production process being split into different tasks, with each worker performing one task, is known as:

• Specialization.

• Division of labor.

• Added value.

• Privatisation.

What is a potential disadvantage of using division of labor?

• Workers become more efficient at their tasks.

• It takes less time to train workers.

• Workers can become bored, which may reduce efficiency.

• Less time is wasted moving between workbenches.