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Topic 1_FOB

Total questions: 21

Worksheet time: 50mins

Name
Class
Date
1.

___________ is the amount of revenue or income that a business owner retains after paying all the expenses associated with the operation of the business.

a)

Sale

b)

Profit

c)

Cost

d)

Debt

2.

How do you define loss?

a)

when costs fall lower than projection

b)

when the bottom line is in the black

c)

when revenue exceeds costs

d)

when costs exceed revenue

3.

The following are known as factors of production, EXCEPT

a)

Entreprenurship

b)

Capital

c)

Supplier

d)

Labour

4.

Which functional area of a business is responsible for converting the factors of production into goods and services?

a)

Management

b)

Marketing/Sales

c)

Operations

d)

Research and Development

5.

Private enterprise system which exist in ___________, is based on competition in the marketplace and private ownership of the factors of production (resources).

a)

unplanned economy

b)

planned economy

c)

market economy

d)

mixed market economy

6.

____________ is the level of joblessness among people actively seeking work in an economic system.

a)

Unemployment

b)

Employment

c)

GDP

d)

Productivity

7.

Labour, capital and entrepreneurship are known as...

(a)  

8.

An Entrepreneur is an individual employed by a large organization who helps develop products and services.

a)

TRUE

b)

FALSE

9.

When the revenue of a company is higher than its costs, the company will have a loss.

a)

TRUE

b)

FALSE

10.

Goods are:

a)

Intangible products

b)

Tangible physical products

11.

In a ________ the resources are owned and controlled by the government.

a)

planned economy

b)

market economy

c)

mixed market economy

d)

modern economy

12.

________ refers to the quantity of a good or service that businesses are willing and able to provide.

a)

Demand

b)

Supply

c)

Surplus

d)

Shortage

13.

A demand curve illustrates the relationship between quantity demanded of a product and the ________.

a)

profit

b)

price

c)

production cost

d)

cost

14.

Differentiating strategy such as brand name, is common in the market characterised by perfect competition.

a)

True

b)

False

15.

The primary reason why businesses invest in resources and take risks is to ________.

a)

provide jobs

b)

produce goods and services

c)

improve their products

d)

earn a profit

16.

The unique feature of an oligopoly market is that the actions of one seller have a significant impact on the profits of all of the other sellers in the market.

a)

TRUE

b)

FALSE

17.

Which of the following industries can be considered as in the oligopolistic market? You may choose more than one answer.

a)

telecommunication

b)

oil & gas

c)

fashion

d)

agriculture

18.

Inflation can best be defined as...

a)

A general increase in prices.

b)

An increase in prices of key items purchased by consumers.

c)

The increase in the value of fiat money

d)

The printing of too much paper money.

19.

Who among the following would be considered as unemployed?

a)

A college student of legal age to work but who is still in school full time.

b)

An entrepreneur in the process of starting a new business.

c)

A secretary who was laid-off from work & is looking at job ads

d)

A housewife taking care of three children.

20.

GDP measures the:

a)

Total market value of intermediate goods and services produced by the citizens of a country in a given year.

b)

Total market value of all final goods and services produced in an economy in a given year.

c)

Change in total employment at U.S. owned firms over the course of a given year.

d)

Change in production levels at U.S. owned firms measured quarterly.

21.
High levels of GDP per capita indicate...
a)

higher levels of happiness 

b)

higher standard of living

c)

equal levels of wealth 

d)

self-sufficient communities