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Business and Economic Performance Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What are the advantages of a sole proprietorship?

a)

Limited liability and shared decision-making

b)

Full control and easy start-up

c)

Unlimited liability and easy start-up

d)

Unlimited liability and shared decision-making

2.

What is the main characteristic of a partnership?

a)

Limited liability

b)

Unlimited liability

c)

Shared decision-making

d)

Easy start-up

3.

What is a disadvantage of a corporation?

a)

Limited liability

b)

Double taxation

c)

Easy start-up

4.

Which market structure has many buyers and sellers, identical products, and no barriers of entry?

a)

Perfect competition

b)

Monopolistic competition

c)

Oligopoly

d)

Monopoly

5.

In which market structure do sellers compete through non-price competition?

a)

Perfect competition

b)

Monopolistic competition

c)

Oligopoly

d)

Monopoly

6.

What type of market structure has extreme control over price and no substitute product?

a)

Perfect competition

b)

Monopolistic competition

c)

Oligopoly

d)

Monopoly

7.

What is the formula for calculating GDP?

a)

C+I+G+(X-M)

b)

C+I+G

c)

C+G+(X-M)

d)

C+I+(X-M)

8.

What does inflation refer to?

a)

Rise in general price level of goods and services

b)

Decrease in general price level of goods and services

c)

Rise in unemployment rate

d)

Decrease in unemployment rate

9.

How is the unemployment rate calculated?

a)

Number of unemployed persons divided by total population

b)

Number of unemployed persons divided by civilian labor force

c)

Number of employed persons divided by total population

d)

Number of employed persons divided by civilian labor force

10.

What is a key advantage of a sole proprietorship?

a)

Shared decision-making

b)

Double taxation

c)

Easy start-up

d)

Unlimited liability