WorksheetsPBF 5.00
Total questions: 59
Worksheet time: 30mins
Adrian and Bailey own a salon. Adrian is a nail technician and Bailey is a cosmetologist. Adrian gives Bailey a pedicure. Bailey gives Adrian a haircut. They do not pay money for the services provided. What does this demonstrate?
exchange
rationing
scarcity
trade-off
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:
distribution.
opportunity cost.
efficiency.
utility.
Which is an example of an economic service?
car stereo
tennis shoes
baseball glove
concert ticket
A killing frost destroys 80% of Florida's citrus crop. This will most likely create:
pure competition.
a buyer's market.
a seller's market.
inelastic demand.
One factor that might limit the human resources available for certain jobs is a/an:
organized training program.
appealing company image.
good safety record.
inadequate pay level.
Which is a reason that natural resources are considered limited?
People lack training or skills needed to do a job.
Technology has advanced faster than training
Some countries are unable to manufacture them.
The earth has certain boundaries.
A local dry cleaner that also launders and presses shirts is selling:
industrial supplies.
specialty goods.
tangible items.
consumer services.
Which is an external factor that affects market price?
location of items in store
consumer buying power
number of items in stock
available credit terms
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?
buyer’s
discount
seller’s
automotive
Which change provides the most time utility for a consumer?
staying open for business on the weekend
arriving at a product trade show early
shopping for a product in the morning
asking for early delivery of a product
Which situations would cause prices to rise?
The corn crop is unusually large one summer.
Insects destroy a large cotton crop.
Animal rights activists march in front of a fur store.
A newspaper article describes poor service provided by a hotel.
When prices increase, producers usually:
increase demand.
decrease supply.
increase supply.
decrease profits.
Which occurs when the supply of individuals who are able and willing to work diminishes?
Capital goods become unlimited.
Capital goods become limited.
Human resources become limited.
Human resources become unlimited.
Equilibrium price of a good or service is determined by trial and error and exists when:
research shows what the market will tolerate.
the amount supplied is equal to the amount demanded.
businesses total their costs and markup.
businesses compute the average selling price in the area.
The desire for which item(s) would be considered a noneconomic want?
a car
nutritious food
a walk
new clothing
Which group of words best describes wants?
limited, changing, and compensating
unlimited, changing, and competing
limited, unchanging, and competing
unlimited, unchanging, and compensating
A business that begins selling winter holiday decorations in late autumn is creating what type of utility?
time
place
form
possession
The usefulness of a product to consumers is referred to as product:
scarcity.
utility.
allocation.
consumption.
Which is a natural resource that can be renewed through people's efforts?
Water
Crude oil
Trees
Mineral deposits
A major characteristic of a market economy is which type of ownership of property?
monopolistic
limited
government
private
Which would customers need to present at the time of purchase to get money taken off the purchase price of the item?
discount coupons
rebate certificates
refund checks
sales receipts
Countries whose governments provide citizens with free medical care, education, and other benefits often are referred to as which type of state?
military
capitalist
consumer
welfare
The basic role of the United States government is to:
limit business startups.
maintain control of prices.
increase production.
protect U.S. citizens.
In a private enterprise economic system, the interaction of supply and demand primarily determines:
government regulation.
economic choices.
the extent of pollution.
product prices.
When manufacturers give back part of the purchase price of an item to the customer, the manufacturers are engaged in:
price fixing.
nonprice competition.
clearance sales.
offering rebates.
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?
Celler-Kefauver Act
Clayton Act
Sherman Act
Robinson-Patman Act
Which is an example of a speculative business risk?
A special promotion fails to increase sales.
A supplier's shipment is lost in transit.
A cashier gives unauthorized discounts to friends.
A customer is injured at a business and sues the company.
In business terms, what is profit?
a risky venture
a good investment
a holiday bonus
a monetary reward
For a business, income remaining after payment of expenses is:
loss.
capital.
profit.
debt.
Which represents a natural risk for the owner of a delivery service?
snowstorm
accident
rising prices
government intervention
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?
$368,730
$232,420
$471,350
$523,820
A business selects goods or services to sell. Which type of risk is this business using?
transferring risk
controlling risk
bypassing risk
avoiding risk
Which is a problem associated with communist command economies?
There is no competition.
There are high taxes.
Supply and demand control what will be produced.
Individuals run the risk of losing their businesses.
Who decides how goods and services will be marketed in a private enterprise economic system?
legislators
business people
competitors
consumers
Which is an example of ethical business behavior?
testing products to ensure they are safe to use
accepting a bribe from a prominent customer
using advertisements to confuse customers
disclosing partial information about products
A U.S. company would decide to offer its products in other countries as a reason to:
subsidize developing countries.
sell obsolete, outdated products.
expand to new, untapped markets.
provide jobs to people in other countries.
Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and:
injunction.
authority.
initiative.
attrition.
Which situation would most likely indicate the need to adapt to changes in the business environment?
The supply of materials used in manufacturing a product has decreased.
The number of the business's competitors has decreased.
The demand for the product is stable.
The business has experienced little employee turnover during the past year.
Businesses that successfully adapt to current market situations often realize that:
cutting costs is important.
more financing is necessary.
diversification is the key.
change is an opportunity.
If a business is not concerned about social responsibility, it is likely to:
become solvent.
prosper.
grow.
be a failure.
A group of individuals wants to open a museum that will display items from early settlers of the area. The group will charge just enough admission to pay the expenses of operating the museum. Will the museum be a business?
No, the museum will not be considered a business.
No, the museum will be a charitable institution.
Yes, the museum will be a not-for-profit business.
Yes, the museum will be a for-profit business.
One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually:
provides experience that increases the business's credibility.
assumes all legal responsibility for the business's actions.
helps with the day-to-day operations of the business.
evaluates the performance of the business's employees.
Which is a factor that affects the business environment?
industry competition
staff organization
information management
conflict negotiation
Which factor has aided the most in creating a global business environment?
technology
government
cultural change
exchange rate
Business ethics involve considering issues about what is:
positive and negative.
legal and illegal.
safe and unsafe.
right and wrong.
A small-business owner whose business is a sole proprietorship is planning to “go global.” What method for going global would be best to recommend to the small-business owner?
Start by hiring an export management company.
Start by building facilities in the countries of interest.
Start by merging with a foreign business that can sell your products.
Start by renting facilities in the countries of interest and hiring foreign employees.
The two main divisions of the trade industry are:
manufacturers and wholesalers.
wholesalers and retailers.
producers and retailers.
wholesalers and producers.
Which is an example of an economic factor that affects the business environment?
business cycle
employee morale
management style
long-term goals
Which is an example of an economic factor that affects the business environment?
business cycle
employee morale
management style
long-term goals
The owner of a small company decides to stock a new product. Which business activity should the owner use to inform potential customers about the new product?
finance
marketing
management
production
Which affects the business environment because it provides the most options for consumers?
command economy
international sanctions
monopoly
global competition
Kim invests heavily in a marketing campaign to stimulate sales for her company. What type of management process is this an example of?
competitive aggression
innovative management
innovative management
proactive management
One reason that has caused the government's role in business to expand is that:
competition in the marketplace has increased.
products have become very technical.
costs of production have continued to increase.
people's attitudes have changed.
The government can borrow money from the private sector in order to pay the costs of regulation by:
setting prices.
raising taxes.
issuing bonds.
selling licenses.
Which provides government protection of business property?
consumer protection laws
patents
economic incentives
revenues
The formula that is generally used to measure productivity is:
outputs divided by inputs.
labor divided by resources.
goods divided by time.
inputs divided by labor.
If three employees each work 35 hours a week and produce a total of 9,765 items, what is their total hourly productivity level?
31
67
93
105
The productivity of an individual worker can be measured by:
dividing the dollar totals of sales by the number of salespeople who made the sales.
dividing the total number of products produced by the number of production steps.
dividing the dollar totals of sales by the costs of making all of those sales.
dividing the number of customers served by the number of hours an employee worked.
At PME Company, four employees worked 25 hours a week and produced 4,200 products. What is the total hourly production output?
42
168
262
1,050
