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Intro to Business - Chapter 2

Total questions: 41

Worksheet time: 28mins

Name
Class
Date
1.

In business terms, what is a profit?

a)

a risky venture

b)

a holiday bonus

c)

a monetary reward

d)

a smart investment

2.

A local dry cleaner that also launders and presses shirts is selling

a)

industrial supplies

b)

tangible items

c)

consumer services

d)

specialty services

3.

For a business, positive income remaining after payment of expenses is

a)

loss.

b)

nothing.

c)

profit.

d)

debt.

4.

Which of the following is a natural resource that can be renewed through people's efforts

a)

water

b)

trees

c)

mineral deposits

d)

crude oil

5.

In a private enterprise economic system, the interaction of supply and demand primarily determines

a)

confusion.

b)

the price of the products being sold.

c)

the extent of pollution.

d)

government regulation.

6.
2. Scarcity deals with issues concerning the everyday consumer and national issues. 
a)
True
b)
False
7.
3. Scarcity does NOT deal with decisions about resources. 
a)
True
b)
False
8.
5. How many factors of production are there?
a)
a. 1
b)
b. 2
c)
c. 3
d)
d. 4
9.
6. An Entrepreneur is NOT a business person.
a)
True
b)
False
10.

7. How many different types of economies are there, according to your book?

a)

4

b)

3

c)

8

d)

367

11.
9. A MARKET economy and a COMMAND economy do business the same way. 
a)
True
b)
False
12.
11. Economic Systems are NOT the methods societies use to distribute resources.
a)
True
b)
False
13.
12. There is NO relationship between price, supply, and demand.
a)
True
b)
False
14.
13. The EQUILIBRIUM price is the point where the quantity demanded and the quantity supplied meet. 
a)
True
b)
False
15.
15. A Command Economy is an economic system in which a central authority makes all the key economic decisions.
a)
True
b)
False
16.
What is another name for human resources?
a)
Labor
b)
People
c)
Homies
d)
Workers
17.

I have 7 students and only 5 cookies. The cookies are

a)

needs

b)

Scarce

c)

Wants

d)

Services

18.

The economic resources used to make this desk are

a)

Natural and Capital Resources only.

b)

Human Resources only.

c)

Labor and Capital Resources only.

d)

Land (Natural), Labor, and Capital Resources

19.

Which is NOT a factor of production?

a)

natural resourecs

b)

labor resources

c)

capital resources

d)

the marketplace

20.

Which statement about natural resources is NOT true?

a)

Natural resources can be processed to make goods.

b)

The amount of natural resources available to a society has little effect on its economy.

c)

Synthetic materials such as nylon can be made from natural resources.

d)

Countries that have scarce natural resources must get them from somewhere else.

21.

Which means the same as "human resources"?

a)

capital resources

b)

service providers

c)

labor resources

d)

unskilled workers

22.

Which is an example of a capital resource?

a)

a machine used to make molded plastic toys

b)

a customer service representative

c)

money borrowed from a bank

d)

the president of a company

23.

What is "opportunity cost"?

a)

the income people receive by taking risks

b)

giving up the chance to use a resource for one thing instead of another

c)

the methods and labor used to produce a good

d)

the income people have to purchase goods and services

24.

Which is a characteristic of capitalism?

a)

Resources are privately owned.

b)

Resources are shared equally.

c)

There is an even distribution of income.

d)

Prices are determined by government planners.

25.

Which is true about people working in a market economy who have labor skills that are in demand?

a)

Their earnings are the same as other workers their age.

b)

Their incomes tend to be lower than others whose skills are not in demand.

c)

Their incomes tend to be higher than others whose skills are not in demand.

d)

Their earnings are not related to demand.

26.

Which is most important in determining the price of a product or service?

a)

profit and competition

b)

business owners' preferences

c)

equilibrium pricing

d)

supply and demand

27.

Which is most likely to happen when the price for a good or service is high?

a)

demand falls

b)

profits rise

c)

supply increases

d)

competition decreases

28.

Which is a characteristic of socialism?

a)

Individuals (private companies) own all major resources.

b)

The Government owns and controls major industries and/or services (like factories and healthcare).

c)

There are many choices for consumers.

d)

There are never any economic problems because the government is in control.

29.

What are two basic types of economic systems?

a)

supply and demand

b)

competition and profit

c)

private enterprise and free enterprise

d)

market economy and command economy

30.
Which of the following is a characteristic of a command economy?
a)
Consumers have few, if any, choices in the market place.
b)
Little government intervention.
c)
Also, called "capitalist" economy
d)
Resources are owned by individuals.
31.
In which economic system does the government have the most control over economic resources?
a)
Mixed
b)
Command
c)
Market
d)
Traditional
32.
In a market economy, who has the least influence over how economic resources are allocated?
a)
The government
b)
Consumers
c)
Businesses/Producers
d)
None of the above
33.

Which of the following is the disadvantage for a market economy?

a)

Sometimes, there are market failures (for example, business or industries can fail).

b)

There is little government intervention.

c)

Great variety of goods or services.

d)

Price are determined by market forces (supply and demand).

34.
The current economic system in the U.S. is...
a)
Mixed
b)
Market
c)
Command
d)
Traditional
35.
The amount of money given or asked for when a service is bought and sold is called its ______
a)
cost
b)
price
c)
value
d)
worth
36.
The quantity of goods that producers are willing to provide at various prices is called the ________
a)
quantity
b)
reserve
c)
stock
d)
supply
37.
The quantity of goods that consumers are willing to buy at various prices is called the 
a)
demand
b)
purchase
c)
request
d)
sale
38.

The point at which the quantity demanded and the quantity supplied meet is called the __________ price.

a)

not even

b)

compromise

c)

dynamic

d)

equilibrium

39.
In a command economy, key economic decisions are made by 
a)
a central authority
b)
individuals
c)
market
d)
mixed
40.

1. Some natural resources, such as trees, wheat, and cattle, are

a)

artificially produced.

b)

imported.

c)

renewable.

d)

irreplaceable.

41.

Which is a characteristic of socialism?

a)

Individuals own all major resources.

b)

Major industries are government owned.

c)

There is little choice for consumers.

d)

There is no incentive to create better products.