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Chapter 1 Business Pre Quiz

Total questions: 15

Worksheet time: 30mins

Name
Class
Date
1.

How do the forces of supply and demand affect the sale of ticket prices?

a)

As demand for tickets increases and supply of tickets decreases, the cost of tickets increases.

b)

As demand for tickets decreases and supply of tickets decreases, the cost of tickets decreases.

c)

As demand for tickets decreases and supply of tickets increases, the cost of tickets increases.

d)

As demand for tickets increases and supply of tickets decreases, the cost of tickets decreases.

2.

Which of the following best describes the negative impact of ticket scalping?

a)

Scalping decreases the availability of tickets through traditional channels, causing ticket price to increase.

b)

Scalping decreases the availability of tickets through traditional channels, causing demand to decrease.

c)

Scalping decreases the availability of tickets through traditional channels, causing demand to increase.

d)

Scalping decreases the availability of tickets through traditional channels, causing ticket price to decrease.

3.

Which of the following scenarios involving scalpers is likely to result in prices for consumers that are lower than the initial price listed by the legitimate retailer?

a)

Scalpers purchase tickets that are undesirable to consumers, forcing the scalpers to auction the tickets at a price lower than the original price offered by the retailer.

b)

Scalpers purchase all available tickets, allowing them to control the price offered to the general public.

c)

After scalpers purchase tickets, it is announced that a desirable and popular guest drummer will join the band.

d)

All of these choices are correct.

4.

Scalpers often artificially decrease supply by releasing tickets in waves, making it impossible for consumers to know how many tickets remain. This causes the equilibrium price to

a)

increase.

b)

decrease.

c)

remain constant.

d)

become zero.

e)

become irrelevant.

5.

In some states there are legal limits to how much a scalper can mark up the price of tickets. Of what type of economy does this suggest?

a)

Modified Capitalism

b)

Pure Capitalism

c)

Communism

d)

Socialism

e)

Monopolistic Competition

6.

How does the government get the money to buy and own these major industries?

a)

borrowing it from other countries

b)

through taxes

c)

borrowing it from its citizens

d)

charitable gifts from its citizens

e)

physical coercion

7.

What kind of economic system does the United States operate within?

a)

mix of socialism and communism

b)

socialism

c)

communism

d)

pure capitalism

e)

a mixed economy

8.

If the price of a product were to go down, then what would happen to the quantity demanded of that product?

a)

Quantity would increase.

b)

Quantity would be decrease.

c)

Demand would increase.

d)

Demand would decrease.

e)

Demand and quantity would stay the same

9.

When supply and demand meet at the equilibrium point, then prices in the market will

a)

trend toward that price.

b)

change demand.

c)

change demand.

d)

stay put.

e)

trend away from that price.

10.

Which of the following is a component of the global business environment?

a)

economic and legal environment

b)

economic and legal environment

c)

competitive environment

d)

social environment

e)

All of these are components of the business environment.

11.

Which of the following is both a pressure and benefit of the global business environment?

a)

global competition

b)

increasing minimum wage

c)

technological environment

d)

job creation

e)

economic expansion

12.

Many taxicab owners and interest groups are calling for city governments to step in and create policies and licenses for ride-sharing companies to operate. This is an example of which economic system?

a)

communism

b)

socialism

c)

modified capitalism

d)

pure capitalism

e)

free-market system

13.

Prior to the emergence of the ride sharing companies, the taxicab industry in major cities was operating in a(n) _______ market structure.

a)

oligopoly

b)

pure competition

c)

monopolistic competition

d)

monopolistic competition

e)

economic contraction

14.

With the expansion of ride sharing mobile apps, the demand for a traditional taxi ride has____ which has ______ the value of the taxi medallion in some larger cities.

a)

decreased; decreased

b)

increased; increased

c)

increased; decreased

d)

decreased; increased

e)

decreased; not affected

15.

Many taxicab owners and interest groups are calling for city governments to step in and create policies and licenses for ride-sharing companies to operate. This is an example of which economic system?

a)

free-market system

b)

communism

c)

socialism

d)

pure capitalism

e)

modified capitalism