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Worksheets5.01 & 5.02 Review
Total questions: 33
Worksheet time: 17mins
Name
Class
Date
1.
Which is a natural resource that can be renewed through people's efforts?
a)
Water
b)
Crude oil
c)
Trees
d)
Mineral deposits
2.
Which group of words best describes wants?
a)
limited, changing, and compensating
b)
unlimited, changing, and competing
c)
limited, unchanging, and competing
d)
unlimited, unchanging, and compensating
3.
Equilibrium price of a good or service is determined by trial and error and exists when:
a)
research shows what the market will tolerate.
b)
the amount supplied is equal to the amount demanded.
c)
businesses total their costs and markup.
d)
businesses compute the average selling price in the area.
4.
Which occurs when the supply of individuals who are able and willing to work diminishes?
a)
Capital goods become unlimited.
b)
Capital goods become limited.
c)
Human resources become limited.
d)
Human resources become unlimited.
5.
When prices increase, producers usually:
a)
increase demand.
b)
decrease supply.
c)
increase supply.
d)
decrease profits.
6.
One factor that might limit the human resources available for certain jobs is a/an:
a)
organized training program.
b)
appealing company image.
c)
good safety record.
d)
inadequate pay level.
7.
Which is a reason that natural resources are considered limited?
a)
People lack training or skills needed to do a job.
b)
Technology has advanced faster than training.
c)
Some countries are unable to manufacture them.
d)
The earth has certain boundaries.
8.
A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:
a)
distribution.
b)
opportunity cost.
c)
efficiency.
d)
utility.
9.
Which is an example of an economic service?
a)
car stereo
b)
tennis shoes
c)
baseball glove
d)
concert ticket
10.
A local dry cleaner that also launders and presses shirts is selling:
a)
consumer services
b)
tangible items.
c)
specialty goods.
d)
industrial supplies.
11.
The desire for which item(s) would be considered a non-economic want?
a)
a car
b)
nutritious food
c)
a walk
d)
new clothing
12.
The usefulness of a product to consumers is referred to as product:
a)
scarcity.
b)
utility.
c)
allocation.
d)
consumption.
13.
A killing frost destroys 80% of Florida's citrus crop. This will most likely create:
a)
pure competition.
b)
a buyer's market.
c)
a seller's market.
d)
inelastic demand.
14.
Which situations would cause prices to rise?
a)
The corn crop is unusually large one summer.
b)
Insects destroy a large cotton crop.
c)
Animal rights activists march in front of a fur store.
d)
A newspaper article describes poor service provided by a hotel.
15.
A local dealership purchased 100 blue pickup trucks, but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating which type of market for blue pickup trucks?
a)
buyer’s
b)
discount
c)
seller’s
d)
automotive
16.
Which change provides the most time utility for a consumer?
a)
staying open for business on the weekend
b)
arriving at a product trade show early
c)
shopping for a product in the morning
d)
asking for early delivery of a product
17.
A business that begins selling winter holiday decorations in late autumn is creating what type of utility?
a)
time
b)
place
c)
form
d)
possession
18.
Which is an external factor that affects market price?
a)
location of items in store
b)
consumer buying power
c)
number of items in stock
d)
available credit terms
19.
In business terms, what is profit?
a)
a risky venture
b)
a good investment
c)
a holiday bonus
d)
a monetary reward
20.
Who decides how goods and services will be marketed in a private enterprise economic system?
a)
legislators
b)
business people
c)
competitors
d)
consumers
21.
When manufacturers give back part of the purchase price of an item to the customer, the manufacturers are engaged in:
a)
price fixing.
b)
non-price competition.
c)
clearance sales.
d)
offering rebates.
22.
The basic role of the United States government is to:
a)
limit business startups.
b)
maintain control of prices.
c)
increase production.
d)
protect U.S. citizens.
23.
Which would customers need to present at the time of purchase to get money taken off the purchase price of the item?
a)
discount coupons
b)
rebate certificates
c)
refund checks
d)
sales receipts
24.
A major characteristic of a market economy is which type of ownership of property?
a)
monopolistic
b)
limited
c)
government
d)
private
25.
Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as which type of state?
a)
military
b)
capitalist
c)
consumer
d)
welfare
26.
What is a business's net profit if it has $762,750 in income, $291,400 in operating expenses, and $238,930 in cost of goods?
a)
$368,730
b)
$232,420
c)
$471,350
d)
$523,820
27.
A vendor is extending credit to the Jones Company in return for the Jones Company's agreement to use the vendor as the sole source of its supplies. What federal act is the vendor and the Jones Company violating?
a)
Celler-Kefauver Act
b)
Clayton Act
c)
Sherman Act
d)
Robinson-Patman Act
28.
In a private enterprise economic system, the interaction of supply and demand primarily determines:
a)
government regulation.
b)
economic choices.
c)
the extent of pollution.
d)
product prices.
29.
Which is an example of a speculative business risk?
a)
A special promotion fails to increase sales.
b)
A supplier's shipment is lost in transit
c)
A cashier gives unauthorized discounts to friends.
d)
A customer is injured at a business and sues the company.
30.
Which is a problem associated with communist command economies?
a)
There is no competition.
b)
There are high taxes.
c)
Supply and demand control what will be produced.
d)
Individuals run the risk of losing their businesses.
31.
For a business, income remaining after payment of expenses is:
a)
loss.
b)
capital.
c)
profit.
d)
debt.
32.
Which represents a natural risk for the owner of a delivery service?
a)
snowstorm
b)
accident
c)
rising prices
d)
government intervention
33.
A business selects goods or services to sell. Which type of risk is this business using?
a)
transferring risk
b)
controlling risk
c)
bypassing risk
d)
avoiding risk
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