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Review for Unit Test 1 (Intro to Business)

Total questions: 53

Worksheet time: 28mins

Name
Class
Date
1.
An economic system where the economic resources are privately owned by individuals rather than government 
a)
communism 
b)
fiscal policy 
c)
capitalism 
d)
monetary policy 
2.

Products are commonly known as

a)

needs and wants

b)

goods and services

c)

factors and production

d)

functions of business

3.

Utility describes the characteristics of a product that satisfy

a)

scarcity

b)

needs and wants

c)

opportunity cost

d)

supply and demand

4.

Entrepreneurs take risks to start and run.....

a)

economic resources

b)

the state of Texas

c)

the country

d)

businesses

5.

In a __________ economy, individuals are free to make their own economic decisions.

a)

market

b)

command

c)

open

d)

traditional

6.

The market price for a product is determined at a point where.....

a)

demand exceeds supply

b)

supply exceeds demand

c)

supply equals demand

d)

none of the above

7.

When demand for a product becomes greater than available supply a(n) _________ develops

a)

surplus

b)

shortage

c)

equilibrium

d)

competition

8.

All economic resources are limited, but needs and wants are ____________

a)

Scarce

b)

Unlimited

c)

Limited

d)

Non-existent

9.

Which of the following is not one of the four factors of production?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

e)

Resources

10.

People who start businesses are.......

a)

Crazy

b)

Bosses

c)

CEO's

d)

Entrepreneurs

11.

A(n) _______ is something a person must have to survive

a)

Need

b)

Want

c)

Spouse

d)

Education

12.

The price of a product is determined by the law of _________

a)

supply and demand

b)

wins and losses

c)

ethics

d)

business and trade

13.

An action or task that is performed, usually for a fee

a)

a service

b)

a good

c)

a business

d)

a favor

14.
When a country decides to focus on advanced technology and a skilled labor force, it is primarily answering which of the basic economic questions?
a)
What to produce
b)
How to produce
c)
Which needs to satisfy
d)
Which wants to satisfy
15.
A markup should be thought of as a pricing mistake because it reduces the amount of money the business has to cover operating expenses and profits.
a)
True
b)
False
16.

A system used to record, classify, summarize and report the financial position of a business is known as which of the following?

a)

Mangement

b)

Distribution

c)

Accounting

d)

Human resources

17.

The employment process is carried out by which department?

a)

Marketing

b)

Distribution

c)

Management

d)

Human Resources

18.

The difference between a good and a service is _________.

a)

A good is an action that can be performed where a service is a physical item that can be touched.

b)

A good is a physical item that can be touched where a service is an action that is performed.

c)

There is no difference between the two.

d)

A good is something bought often where a service is rarely purchased.

19.

Money that remains after a business has paid for the expenses of running the business.

a)

Competition

b)

Marketing

c)

Franchise

d)

Profit

20.

Contest between businesses to win customers' business and loyalty

a)

Needs

b)

Competition

c)

Marketing

d)

Partnership

21.

Items necessary for existence, such as clothing, food, and shelter.

a)

Needs

b)

Wants

22.

Items that would be nice to have, but are not necessary.

a)

Needs

b)

Wants

23.

Tasks that businesses perform or provide for customers, such as haircuts and car washes.

a)

Goods

b)

Services

24.

Items businesses sell that can be physically weighed or measured, such as clothing and candy.

a)

Goods

b)

Services

25.
What is scarcity? 
a)
Giving something up to have something else
b)
Extra cost of production
c)
The condition that results form having unlimited wants with limited resources
d)
Rise in general level of prices and workers need more money
26.
Which of the following is NOT a natural resource?
a)
Oil
b)
Water
c)
Car
d)
Air
27.

Which of the following IS physical capital resource?

a)

Wood

b)

Computer

c)

Labor

d)

Knowledge

28.
Land, Labor, Capital, and Entrepreneurship 
a)
Diversification
b)
Deductions
c)
Portfolio
d)
Factors of Production 
29.

Tools and machinery are which factor of production?

a)

capital

b)

land

c)

labor

d)

entrepreneurship

30.

Macro and operating factors are part of the external environment

a)

false

b)

true

31.

For a business, income remaining after payment of expenses is

a)

loss

b)

capital

c)

profit

d)

debt

32.

The highest valued alternative that must be given up in order to choose an option is called the:

a)

opportunity cost.

b)

utility cost.

c)

scarcity expense.

d)

disutility option.

33.

resources owned and controlled by government

a)

Command

b)

Traditional

c)

Market

d)

Mixed

34.

A written description of a business venture that describes all aspects of the business is called

a)

a company charter.

b)

a company policy.

c)

a business plan.

d)

an executive summary.

35.

Main types of financial statements include all of these except

a)

statement of cash flows

b)

balance sheet

c)

petty cash vouchers

d)

income statement

36.

Gross Domestic Product

a)

is the market value of all final products produced in a country during a specific time period.

b)

includes everything people buy for personal use, such as food, clothing, cars, medical care and recreation.

c)

is the GDP of a nation divided by its population.

d)

is the general rise in prices throughout an economy.

37.

A general decline in prices throughout an economy

a)

Inflation

b)

Hyperinflation

c)

Deflation

d)

Interest Rate

38.

A high GDP means the economy is

a)

Strong

b)

Weak

39.

Monopoly is

a)

a market structure with a small number of businesses selling the same or similar products

b)

characterized by a large number of businesses selling the same product for the same price

c)

a large number of businesses selling similar, but not the same, products and at different prices

d)

a market structure with one business that has complete control of a market's entire supply of goods or services

40.

COGS stands for

a)

cost of goods sales

b)

cost of goods serviced

c)

cost of goods sold

41.

What is balance sheet?

a)

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.

b)

A Balance sheet is one of a company's core financial sheet that shows their profit and lossProfit and Loss

42.

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

43.

A perfect competitive firm charges a price that is ____________.

a)

different to other firms

b)

higher than other firms

c)

lower than other firms

d)

similar to other firms

44.
Perfect competition involves:
a)
Sellers working together to set prices
b)
A large number of buyers & sellers
c)
Difficulty entering & exiting the market
d)
Little information is available to buyers
45.
Under perfect competition,
a)
products are similar but not identical.
b)
numerous restrictions prevent firms from entering the market.
c)
no seller can sell a product above the prevailing market price.
d)
a single seller can affect price.
46.
This is the social & political commitment & freedom to start their own businesses & compete
a)
free enterprise system
b)
free response system
c)
free travel system
d)
freedom of choice
47.

The business cycle is made up of how many phases?

a)

5

b)

4

c)

3

d)

2

48.

The business cycle rises above the trendline during-

a)

rescessions

b)

expansions

c)

troughs

49.

GDP declines during a(an)

a)

peak

b)

contraction

c)

expansion

50.

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

a)

Peak

b)

Contraction/Recession

c)

Trough

d)

Expansion/Growth/Recovery

51.

The inspector from the health department visited your restaurant to ensure that your practices and the food you serve is safe.


Which characteristic of a Mixed Economy does this describe?

a)

Limited Government

b)

Competition

c)

Motive of Self-Interest

d)

Private Property

52.

An indian tribe living in a village and bartering for goods they need are an example of ______________.

a)

mixed economy

b)

traditional economy

c)

command economy

53.

Competition between businesses is an example of what economic system?

a)

Traditional

b)

Command

c)

Market