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Entrepreneurship Chapter 2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Earning a college degree would belong in which stage of Maslow's Hierarchy of needs?

a)

Self-Actualization

b)

Physiological

c)

Social

d)

Security

2.

Which of the following is an example of a need?

a)

A new MP3 player

b)

A warm coat in winter

c)

Dinner at the best restaurant in town

d)

Concert Tickets

3.

Your needs and wants:

a)

are the same as everybody else's.

b)

are never ending.

c)

can all be satisfied if you have enough money.

d)

all of the above.

4.

Which of the following would be considered a capital resource?

a)

the oil used to run machinery

b)

employees who work on an assembly line

c)

executives who decide how to operate a business

d)

a truck used to make deliveries

5.

Individuals and businesses decide what, how, and for whom goods and services are produced in a:

a)

Market Economy

b)

Traditional Economy

c)

Complex Economy

d)

Command Economy

6.

The private ownership of resources by individuals rather than the government is called:

a)

Objectivism

b)

Socialism

c)

Capitalism

d)

Communism

7.

How does competition benefit consumers?

a)

It forces a business to improve products.

b)

It encourages businesses to provide good customer service.

c)

It provides an incentive for businesses to keep prices as low as possible.

d)

All of the above

8.

Demand is probably MOST inelastic for which of the following items?

a)

Refrigerators

b)

Diamonds

c)

Milk

d)

Filet Mignon Steak

9.

____________ exists when there is only one provider of a product or service.

a)

Perfect Competition

b)

An Oligopoly

c)

Monopolistic Competition

d)

A Monopoly

10.

Sunshine Bakery had the following costs for the month: Rent: $700, Flour: $1,500, Insurance: $350, Loan Payment: $1,400. What were the total fixed costs for Sunshine Bakery for the month?

a)

$1,500

b)

$3,950

c)

$2,450

d)

There are no fixed costs given.

11.

________________ are the means through which goods and services are produced.

a)

Economic Resources

b)

Marketing Mix

c)

Specialization

d)

Scarcity

12.

In a(n) __________________ economy, the government determines what, how, and for whom products and services are produced.

a)

Market

b)

Mixed

c)

Command

d)

Traditional

13.

The difference between the revenues earned by a business and the costs of operating a business is called ______________.

a)

Competition

b)

Freedom of Choice

c)

Profit

d)

Demand

14.

_________________ occurs because people's needs and wants are unlimited but the resources to meet those needs and wants are limited.

a)

Scarcity

b)

Specialization

c)

Demand

d)

Oligopoly

15.

_________________ cost measures the disadvantages of producing one additional unit of a good or service.

a)

Marginal

b)

Fixed

c)

Variable

d)

Equilibrium

16.

A(n) _________________ exists when a market is dominated by a small number of businesses that gain the majority of total sales revenue.

a)

Oligopoly

b)

Marginal Benefit

c)

Equilibrium Price

d)

Monopoly

17.
The equilibrium price is 
a)
the price set by the government
b)
the price at which supply equals demand
c)
the price at which exports equal imports
d)
the price set by the foreign exchange rate 
18.
A market economy is also called 
a)
A.  socialism
b)
B.  capitalism 
c)
C.  free enterprise system
d)
D.  b and c 
19.
The United States economy is best described as 
a)
a pure market economy in which the government plays no role in the economy
b)
a pure command economy in which the government controls the economy
c)
a mixed economy in which suppliers and consumers play the primary role 
d)
a socilist economy in which suppliers and consumers play the primary role 
20.
Which of the following  statements about competition is false? 
a)
competition motivates entrepreneurs to introduce new products to consumers 
b)
competition between suppliers drives prices upward
c)
competition between consumers benefits suppliers
d)
competition occurs between suppliers and between consumers