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Worksheetsintro to business ch. 1
Total questions: 47
Worksheet time: 24mins
What is the study of how goods and services are produced, sold, and used?
Marketing
Economics
Sociology
Psychology
Who is considered a customer?
A person who sells a product
An individual or group that buys a product
A manager of a business
A supplier of raw materials
What is a market?
A place where only sellers meet
A location for storing goods
Anywhere buyers and sellers meet to buy and sell goods
A type of financial institution
What does scarcity refer to?
When supply is higher than demand
When demand is higher than available resources
When resources are abundant
When prices are stable
What is a product?
A service provided for free
Anything that can be bought or sold
A type of business strategy
A financial asset
What is profit?
The total revenue of a business
The difference between income earned and expenses incurred by a business during the year
The amount of money spent on production
The total cost of goods sold
What is capitalism?
A system where the government controls all resources
An economic system that is private and free
A type of social welfare system
A form of communism
What are factors of production?
The total number of goods produced
Economic resources a nation uses to make goods and supply services for its production
The amount of labor available
The level of technology in a country
What is a service?
A tangible product
An action performed for a fee
A type of financial investment
A physical item
What is the difference between goods and services?
Goods are actions; services are physical items
Goods are physical items; services are actions
Goods are intangible; services are tangible
Goods are always more expensive than services
What is the difference between wants and needs?
Wants are necessary for survival; needs are desires
Wants are desires; needs are necessary for survival
Wants are always more expensive than needs
Wants are tangible; needs are intangible
Which function of business involves controlling and making decisions about a business?
Production
Finance
Marketing
Management
What is the primary focus of the marketing function in business?
Making a product
Identifying and satisfying customer demand
Controlling business operations
Managing financial activities
Which factor of production involves natural materials found in nature?
Labor
Capital
Land
Entrepreneurship
In which economic system does the government make all economic decisions for citizens?
Traditional
Command
Market
Mixed
What does the factor of production 'Capital' refer to?
Natural resources
Work done by people
Tools and equipment used for production
Starting a new business
Which type of utility is added when a business changes the form of a good or service to make it more useful?
Place
Time
Form
Possession
What type of utility involves making products available at convenient places?
Information
Place
Time
Form
Which utility ensures products are available when customers need or want them?
Possession
Information
Time
Form
What type of utility involves providing facts and details about a product to the customer?
Information
Place
Time
Possession
Which utility makes it easier for customers to acquire a product?
Form
Possession
Time
Information
What does GDP stand for?
Gross Domestic Product
General Domestic Product
Global Domestic Product
Gross Development Product
What is the definition of inflation?
A general rise in prices
A general decline in prices
A measure of average prices
The market value of all final products
What does CPI measure?
A measure of average prices paid by consumers
The market value of all final products
The amount and direction of change in GDP
A general decline throughout the economy
What is deflation?
A general decline throughout the economy
A general rise in prices
The market value of all final products
A measure of average prices paid by consumers
What is hyperinflation?
A slight increase in prices
A decrease in the cost of living
Extreme out of control inflation
A stable economic condition
What does the term "interest" refer to?
The principal amount of a loan
The amount a borrower pays
The total cost of an item
The profit from an investment
What is the labor force?
All the people who are capable of working
Only those currently employed
Only those seeking employment
Only government employees
What does the unemployment rate measure?
The number of job openings
The percentage of civilians unemployed
The total workforce
The number of people employed
What is productivity?
The total number of hours worked
Measurement of worker's production
The amount of goods sold
The number of employees in a company
What is specialization?
General production of all items
Focus on production of specific items
Reducing production costs
Increasing the number of products
What is the stock market?
A system for buying stocks
A place to store goods
A method of saving money
A type of bank account
What is a bond market?
A place to trade commodities
A certificate of debt
A type of insurance
A savings account
What does the business cycle refer to?
Constant economic growth
Alternating periods of expansion/contraction
A steady decline in the economy
A fixed economic state
What is the purpose of antitrust laws?
To increase taxes
To promote fair competition and prevent unfair business practices
To support monopolies
To reduce government regulations
What is the term for the end of an economic expansion?
Recession
Peak
Trough
Inflation
Which stage of the economic cycle is characterized by a decline in output?
Peak
Trough
Recession
Hyperinflation
What is the lowest stage of the economic cycle called?
Peak
Recession
Trough
Inflation Rate
Which market structure is characterized by a large number of businesses?
Monopoly
Oligopoly
Monopolistic
Perfect
What is a market structure with one business having complete control called?
Oligopoly
Monopoly
Monopolistic
Perfect
What term describes a general rise in prices?
Deflation
Inflation
Hyperinflation
Inflation Rate
What is the term for an extreme rise in inflation that is out of control?
Inflation Rate
Deflation
Hyperinflation
Recession
Which of the following is a role of government in the economy?
Provides entertainment services
Manages the economy
Manufactures goods
Sells private property
What role does the government play in providing public services?
Provides legal advice
Provides public services and goods
Provides private loans
Provides international aid
How does the government promote competition in the economy?
By creating monopolies
By promoting competition
By increasing taxes
By reducing exports
What is one way the government corrects for externalities?
By reducing public spending
By correcting for externalities
By increasing tariffs
By privatizing industries
Which role involves the government providing a legal framework?
Provides financial aid
Provides legal framework
Provides educational services
Provides healthcare
