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PBMF 1st Semester Exam part 1

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following is an economic need?

a)

a. water

b)

a. concert tickets

c)

a. a loaded SUV

d)

a. a new television

2.

If everybody had an unlimited supply of economic resources, which of the following would not exist?

a)

b. wants

b)

b. scarcity

c)

needs

d)

b. capitalism

3.

Which of the following is NOT an especially important principle of the U.S. economic system?

a)

tradition

b)

private property

c)

freedom of choice

d)

profit

4.

Generally, as the price of a product increases,

a)

demand will increase.

b)

consumers will be willing to purchase larger quantities of the product

c)

businesses will be willing to supply larger quantities of the product

d)

the supply curve will slope downward

5.

GDP measures a country’s economic output during

a)

Five years

b)

One week

c)

One year

d)

One month

6.

If wages increase faster than gains in productivity, prices will rise. Why?

a)

Because the cost of producing goods decreases

b)

Because demand will increase for all products

c)

Because the cost of producing goods increases

d)

Business owners will demand higher prices because they know workers have more money to spend.

7.

If GDP growth slows for at least ____________________ quarter(s) in a calendar year, the economy is probably in a recession

a)

3

b)

1

c)

2

d)

4

8.

The interest rate banks charge their best business customers is the

a)

discount rate

b)

T-bill rate

c)

prime rate

d)

mortgage rate

9.

Which of the following is an example of a

capital project?

a)

A large corporation gives all employees a 5 percent wage increase

b)

A small office buys several boxes of paper for the printer

c)

A small business purchases two new pickup trucks

d)

A mid-size company restocks the supply cabinet with pencils and markers

10.

Which of the following scenarios is likely to

cause the value of a country’s currency to rise?

a)

increased demand for the nation’s products and currency

b)

higher interest rates

c)

prolonged inflation

d)

sudden change in government

11.

A limit that a government places on the quantity of a product that may be exported or imported during a given period is called a

a)

tariff

b)

luxury tax

c)

quota

d)

trade surplus

12.

Selling the right to use some intangible property for a fee or royalty is called

a)

a free-trade agreement

b)

franchising

c)

licensing

d)

a joint venture

13.

____________________ are principles of morality or rules of conduct

a)

Traditions

b)

Cultures

c)

Customs

d)

Ethics

14.

In the United States, police and fire protection is usually provided by

a)

the local government

b)

large corporations

c)

the federal government

d)

the state government

15.

Which of the following would NOT be considered a utility company?

a)

a gas station

b)

a water works

c)

a telephone company

d)

an electric company

16.

Governments borrow money by selling

a)

promissory notes

b)

bonds

c)

stock

d)

all of the above

17.

About what percentage of U.S. businesses employ more than 100 workers?

a)

5 percent

b)

less than 1 percent

c)

35 percent

d)

20 percent

18.

Business activities start with ____________________, which create the products and services used by individuals and other businesses.

a)

intermediaries

b)

service businesses

c)

producers

d)

marketers

19.

A(n) ____________________ is a written contract granting permission to operate a business to sell products and services in a set way.

a)

license

b)

franchise

c)

cooperative agreement

d)

partnership agreement

20.

Employees at the Trexel Company are frequently confused about their assignments, and many employees are unclear about who exactly they report to. Trexel Company does not seem to provide an adequate

a)

matrix structure

b)

span of control

c)

mission statement

d)

unity of command

21.

In the United States, women own close to this percentage of small business.

a)

50 percent

b)

25 percent

c)

35 percent

d)

75 percent

22.

Which of the following does NOT describe a typical small business?

a)

It is dominant in its field

b)

It operates in one or very few locations

c)

The owner is usually the manager

d)

It serves a small market

23.

In which stage of the career planning process would you begin to develop strong work relationships and practice career success behaviors?

a)

employment application

b)

personal assessment

c)

career development and analysis

d)

interview process

24.

Goods

a)

have no physical characteristics

b)

must be provided to you at the time you want to consume them

c)

must be provided to you at the time you want to consume them

d)

are things you can see and touch

25.

Which of the following is the FIRST step in the career planning process?

a)

application process

b)

career development

c)

employment market analysis

d)

personal assessment