Font size
WorksheetsUnit 3 Review
Total questions: 59
Worksheet time: 30mins
Another name for "business" is
capital
economic system
exchange
enterprise
Which of the following is not one of the fundamental questions of economics?
How are goods and services produced?
What goods and services are to be produced?
Where are goods and services produced?
For whom are goods and services produced?
In which type of economic system do suppliers and consumers control production and price of goods?
market
mixed
command
all of the above
The United States has which type of economic system?
socialist
communist
market
command
Which of the following is not a benefit of entrepreneurship for the local economy?
paying tariffs
hiring employees
joining a civic organization
paying taxes
Economics is
a social science
the study of how people satisfy their wants and needs
the study of how economies work
all of the above
In economic terms, scarcity occurs when
not enough money is available for people to buy things
natural resources have been used up
there is not enough of a good or service to meet the demand for it
too much money is chasing too many goods or services
A country’s economic system is also called its
capitalism
economy
voluntary trade system
growth
Koran Bolden’s business, Street Dreamz, is socially
symbolic
responsible
sustainable
recognized
In a command economy, the government controls
ownership
property
price
all of the above
The cash and goods a business owns are its
intellectual property
capital
demand
reputation
In a market economy, the government controls the production of goods and services
True
False
Which of the following is not true about competition between suppliers?
it encourages innovation
it is good for consumers
it pushes prices upward
it pushes prices downward
Which of the following is regarded as a problem that a nation would want to fix through its economic system?
equilibrium prices
limited supply of goods and services
supply and demand
entrepreneur's profit motive
Which force below does not contributing to making market economies work efficiently?
Businesses are encouraged by higher prices to supply more goods.
Businesses want to make money.
Consumers seek lower prices
Consumers seek higher prices.
The quantity of goods and services that a business is willing to sell at a specific price and a specific time is called
supply
surplus
demand
equilibrium
The quantity of goods and services that customers are willing to buy at a specific price and a specific time is called
market price
supply
excess capacity
demand
When the supply is greater than the demand, the price of a product or service
falls
stays the same
rises
all of the above
To get rid of a surplus, a business owner can
lower demand to increase the price
raise the price to increase supply
lower the price to increase demand
raise the price to increase demand
The equilibrium price for a product or service is
the price at which consumers will buy the amount being supplied
the point at which the supply and demand curves intersect
the price at which the supplier wants to supply enough to meet consumer demand
all of the above
If the price of a product rises, suppliers will
want to increase its supply
want to supply more of it
want to supply less of it
want to increase its demand
If you think demand for your product will be high, you should
make less of it
charge a high price for it
cut the price to attract customers
all of the above
Competition between consumers pushes prices downward.
True
False
When there are not enough goods to meet the demand, the result is a surplus of those goods.
True
False
In international trade, the main purpose of a quota is to
create a positive impact on the foreign exchange rate
limit the quantity of a product that can be imported into a country
generate tax income from imported goods
all of the above
Importing and exporting are business activities that take place within
nonprofit organizations
the United States
countries with a command economy
the global economy
Which of the following are potential obstacles for entrepreneurs who want to conduct international trade?
cultural differences between countries
trade barriers
tariffs
all of the above
The foreign exchange rate is
the fair trade value of currencies
the rate at which countries do business
the value of the dollar in relation to foreign currencies
the value of one currency in relation to another
Fair trade is a policy that
helps developing nations
is encouraged by private organizations
links small producers with foreign merchants
all of the above
Because both UPS and FedEx provide overnight delivery services, they are an example of which of the following two?
indirect competitors
partners
strong direct competitors
weak direct competitors
Coca Cola and HonestTea (which sells organic teas by the bottle) are an example of
weak direct competitors
indirect competitors
strong direct competitors
partner
When engaged in international trade, business etiquette includes being respectful of a nation's
attitudes
language
customs
all of the above
Market share is
your target market minus your competitors’ customers
your target market
the biggest percentage of your total market
the percentage of your target market that is buying from your business
The market share percentage for a business that has achieved $500,000 in total sales in a $2 million market is
2%
25%
40%
50%
Any restaurant can be considered indirect competition to McDonald's.
True
False
An expanded SWOT analysis includes data about your closest competitors.
True
False
Competition between suppliers pushes
prices higher
consumers to buy less
prices lower
supply higher
Which is not a benefit of competition?
better quality
innovation
lower prices
less consumer choice
Entrepreneurs who consistently make a profit over time can
donate profits to benefit society
offer more products
invest in other businesses
all of the above
The "profit motive" is
the economics of one unit
profit calculated as a percentage of costs
the reason entrepreneurs take on business risk
the money left over when sales are subtracted from costs
When parents rush to the mall to buy a popular toy for the holidays,
they create competition among consumers
suppliers of the toy may charge a higher price for it
the supply of the toy may fall
all of the above
A business makes a profit when
operating costs are higher than money from sales
money from sales is greater than money spent on expenses
competition is high
money from sales is lower than overhead
The strategy of basing your price around what your competitors charge is called
attraction pricing
competitive price management
competition-based pricing
demand pricing
The economics of one unit is
the difference between the sales price of one unit and the cost of that unit
the calculation of the profit or loss a business makes on each unit sold
the calculation of the profit or loss on one unit of sale
all of the above
If a cupcake store owner makes $3.00 in profit on every $6.00 cupcake sold, her profit percentage is
60%
50%
30%
none of the above
Amazon is the world’s largest online retailer.
True
False
Competition between consumers for a product or service will push its price up.
True
False
Competitive intelligence refers to
the experience of a competitive company
the knowledge base of a competitive business owner
the ability to think analytically about a business
the data collected about competitive businesses
Kara’s Koffee Beans sells the same organic as her closest competitor, but Kara also offers hot coffee delivery to downtown offices. Kara’s delivery service is her
competitive advantage
competitive intelligence
competitive matrix
competitive data
For Jesus and Toheeb’s business, T&J Soccer, their competitive advantage is that their soccer socks
are cheaper than competitors’ socks
are available online
keep shinguards in place
allow players to change out their shin guards
Which of the following is an example of a competitive mix?
Burger King, which delivers a variety of fast foods
The Cooking Channel, which delivers a mix of programs
FedEx Kinko’s, which combines delivery and office services
all of the above
Which of the following should not be included in a persuasive message to your customer
spelling or grammatical errors
data or facts that support your message
stating your main point more than once
an explanation of how your product or service will benefit customers
Which of the following is not a potential differentiator?
carrying capacity
selling method
mix of products
unique service
To determine your competitive advantage, which of the following would you want to know?
what products your competitor carries
the type of customer service your competitor offers
what your competitor charges for the products
all of the above
Amazon was the first company to exclusively sell books, music and movies online. This was Amazon’s
differentiator
market research
competitive matrix
competitive intelligence
A competitive matrix is used to compare one business with
the mass market
its direct competitors
its indirect competitors
the market indicators
Posing as a customer at a competitor's place of business is a way to
uncover a competitive advantage
gather competitive intelligence
perform market research
all of the above
In market research, competitive data could include the number of employees and the annual sales of a competitor.
True
False
A competitive matrix is used to compare one business to its indirect competitors.
True
False
