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Unit 2: Quiz 3 "Practice Questions"

Total questions: 24

Worksheet time: 6hrs 0mins

Name
Class
Date
1.

Complete the sentence:

Costs that stay the same regardless of how much of a good or service is produced are _____.

a)

fixed costs

b)

opportunity costs

c)

variable costs

d)

none of the above

2.

Complete the sentence:

Costs that change with increases and decreases in the amount produced are _____.

a)

fixed costs

b)

opportunity costs

c)

variable costs

d)

none of the above

3.

Complete the sentence:

Costs of selecting one opportunity or investment over another are _____.

a)

fixed costs

b)

opportunity costs

c)

variable costs

d)

none of the above

4.

Complete the sentence:

Materials are an example of _____.

a)

fixed costs

b)

opportunity costs

c)

variable costs

d)

none of the above

5.

Complete the sentence:

Choosing to go to college over getting a job right out of high school is an example of a(n) _____.

a)

fixed costs

b)

opportunity costs

c)

variable costs

d)

none of the above

6.

Complete the sentence:

Rent is an example of a(n) _____.

a)

fixed costs

b)

opportunity costs

c)

variable costs

d)

none of the above

7.

Complete the sentence:

The desire to earn a profit is called _____.

a)

smart decision making

b)

profit motive

c)

business

d)

entrepreneurship

8.

Match the action needed to increase profits with the reason a business might fail.
To become successful, this small business owner needs to find a way to distinguish her company from other companies, offering something special to customers.

a)

competition

b)

finances

c)

poor management

d)

bad location

9.

Match the action needed to increase profits with the reason a business might fail.
A small company, especially a store, usually has a better chance of succeeding if it is in an area with other businesses because it can draw in new customers.

a)

competition

b)

finances

c)

poor management

d)

bad location

10.

Match the action needed to increase profits with the reason a business might fail.
Advertising the company to potential customers would match with_____.

a)

competition

b)

finances

c)

poor management

d)

bad location

11.

Match the action needed to increase profits with the reason a business might fail.
Improve understanding of how to manage the company's employees.

a)

competition

b)

finances

c)

poor management

d)

bad location

12.

Match the action needed to increase profits with the reason a business might fail.
Set a realistic budget for the company and limit unnecessary expenses.

a)

competition

b)

finances

c)

poor management

d)

bad location

13.

Complete the sentence:

Unhappy customers equal _ .

a)

less profit

b)

equal profit

c)

more profit

14.

Complete the sentence:

Happy customers and employees equal _

a)

less profit

b)

equal profit

c)

more profit

15.

Complete the sentence:

_____ are the costs related to the product that have to be paid regardless of the amount you sell.

a)

Fixed costs

b)

Opportunity costs

c)

Variable costs

d)

none of the above

16.

Complete the sentence:

_____ are the costs that change depending on a company's performance.

a)

Fixed costs

b)

Opportunity costs

c)

Variable costs

d)

none of the above

17.

Complete the sentence:

A business owner will have to decide how selecting one thing over another will impact the business. This is an example of _____.

a)

Fixed costs

b)

Opportunity costs

c)

Variable costs

d)

none of the above

18.

Complete the sentence:

Labor is an example of a(n) _____.

a)

Fixed costs

b)

Opportunity costs

c)

Variable costs

d)

none of the above

19.

Complete the sentence:

Choosing to go to get a job right out of high school instead of going to college is an example of a(n) _____.

a)

Fixed costs

b)

Opportunity costs

c)

Variable costs

d)

none of the above

20.

Complete the sentence:

Payroll is an example of a(n) _____.

a)

Fixed costs

b)

Opportunity costs

c)

Variable costs

d)

none of the above

21.

Complete the sentence:

The desire to earn a profit is called ____

a)

making amrt decisions

b)

business

c)

entrepreneurship

d)

profit motive

22.

Complete the sentence:

Opportunity costs are ____

a)

the costs related to the product that have to be paid regardless of the amount you sell

b)

the costs that change depending on a company's performance

c)

the costs resulting from a business owner's choice when selecting one thing over another and how it will impact the business

d)

none of the above

23.

Complete the sentence:

Supplies are an example of a(n) _____.

a)

fixed costs

b)

opportunity costs

c)

variable costs

d)

none of the above

24.

Complete the sentence:

Insurance is an example of a(n) _____.

a)

fixed costs

b)

opportunity costs

c)

variable costs

d)

none of the above