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WorksheetsPOBF Unit 5: Understand Economics
Total questions: 45
Worksheet time: 23mins
Which is an example of an economic service?
car stereo
tennis shoes
baseball glove
concert ticket
When prices increase, producers usually:
increase demand.
decrease supply.
increase supply.
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
The usefulness of a product to consumers is referred to as product:
scarcity
utility.
allocation
consumption.
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.
A local dry cleaner that also launders and presses shirts is selling:
industrial supplies.
specialty goods.
tangible items.
consumer services.
A business that begins selling winter holiday decorations in late autumn is creating what type of utility?
time
place
form
possession
The desire for which item(s) would be considered a noneconomic want?
a car
nutritious food
a walk
new clothing
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 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.
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.
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
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 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.
Which is a natural resource that can be renewed through people's efforts?
Water
Crude oil
Trees
Mineral deposits
Which group of words best describes wants?
limited, changing, and compensating
unlimited, changing, and competing
limited, unchanging, and competing
unlimited, unchanging, and compensating
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.
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
Who decides how goods and services will be marketed in a private enterprise economic system?
legislators
business people
competitors
consumers
In a private enterprise economic system, the interaction of supply and demand primarily determines:
government regulation.
economic choices.
the extent of pollution.
product prices.
In business terms, what is profit?
a risky venture
a good investment
a holiday bonus
a monetary reward
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.
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.
A major characteristic of a market economy is which type of ownership of property?
monopolistic
limited
government
private
Which represents a natural risk for the owner of a delivery service?
hurricane
accident
rising prices
government intervention
For a business, income remaining after payment of expenses is:
A big investment in a ad campaign 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.
For a business, income remaining after payment of expenses is:
loss
capital.
profit.
debt.
Which affects the business environment because it provides the most options for consumers?
command economy
international sanctions
monopoly
global competition
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
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.
If a business is not concerned about social responsibility, it is likely to:
become solvent.
prosper.
grow.
be a failure.
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
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.
Which factor has aided the most in creating a global business environment?
technology
government
cultural change
exchange rate
Which is a factor that affects the business environment?
industry competition
staff organization
information management
conflict negotiation
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.
Which provides government protection of business property?
consumer protection laws
patents
economic incentives
revenues
What are the 4 components of GDP?
Manufacturing, personal consumption, business consumption, government consumption
personal consumption, business consumption, government consumption, net exports
personal consumption, business consumption, government consumption, the stock market
personal consumption, government consumption, the stock market, manufacturing.
The final market value of the total output of all goods and services produced within a country during a year's time.
Inflation
Deflation
Supply and Demand
GDP (Gross Domestic Product)
A rapid rise in prices that may occur when demand exceeds supply or productivity declines and costs of labor go up.
Inflation
Deflation
Supply and Demand
GDP (Gross Domestic Product)
