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Trovon's POP CH.5.1 Study Guide

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Most U.S. businesses are

a)

small

b)

large

c)

mainly consumers

d)

quite large

2.

The most important role of businesses is to

a)

sell the fastest they can

b)

sell as much cars as possible

c)

make or distribute products

d)

be better than their competitors

3.

Employee ____ are used to purchase personal goods and services

a)

bank accounts

b)

wages

c)

tax revenue

d)

income

4.

The idea of money flowing from businesses to households and government and back again is known as the _______.

a)

capital

b)

research and development

c)

tax revenue

d)

circular flow of income model

5.

Why do businesses need capital?

a)

profits

b)

to operate

c)

train employees

d)

buy goods and services

6.

Many businesses have ____ departments that work to discover new product or service ideas.

a)

research and development

b)

borrowing

c)

retailer

d)

manufacturers

7.

The activities and processes for creating, communicating, and delivering the goods and services wanted by a business’s

customers is known as ____.

a)

out-buying competitors

b)

selling goods

c)

marketing

d)

producing resources

8.

_____________ get supplies from other producers and convert them into products

a)

manufactures

b)

intermediaries

c)

direct consumption

d)

consumers

9.

______________ are businesses involved in selling the goods and services of producers to consumers and other businesses

a)

consumers

b)

intermediaries

c)

manufacturers

d)

producers

10.

____ create the products and services used by individuals and other businesses.

a)

manufacturers

b)

extractors

c)

consumers

d)

producers

11.

Business activities start with producers

a)

true

b)

false

12.

A consumer sells activities that are consumed by its customers.

a)

true

b)

false

13.

capital is the amount of money and things with monetary value that a business owns.

a)

true

b)

false

14.

retailers buy large amounts of products to re-sell to customers.

a)

true

b)

false

15.

extracting refers to the activities and processes for creating, communicating, and delivering the

goods and services wanted by a business’ customers.

a)

true

b)

false