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WorksheetsBusiness Essentials
Total questions: 40
Worksheet time: 20mins
When employees are working faster or better, they are increasing their
wages.
benefits.
value.
efficiency.
A hurricane that destroys a business is an example of a(n) _______ risk.
operational
financial
strategic
hazard
The automobile industry, the pharmaceutical industry, and the oil industry are all examples of
market structures.
perfect competition.
oligopolies.
monopolistic competition.
What motivates businesses to produce efficiently and sell effectively?
The desire to spend money
The hope of making a profit
The need for recognition
The chance to start a trend
A gap between unlimited wants and limited resources creates
economics.
resources.
wants.
scarcity.
Seeing a movie at a theater would be considered a(n) __________ want.
economic
unlimited
limited
non-economic
Which of the following statements about perfect competition is correct:
There is a limited supply of goods and services.
Businesses have a good deal of control over the market.
Products vary from seller to seller.
It is used as a benchmark to compare real market structures against.
Which of the following represents a primary business activity?
Scheduling
Designing
Marketing
Supervising
Offering high quality, large assortments, and free shipping are examples of
rebates.
nonprice competition.
price fixing.
price competition.
When a business keeps a risk because management is unaware of it, the business is__________ the risk.
avoiding
preventing or controlling
retaining
transferring
Having well-planned buildings and providing effective employee training are ways that a business can __________ business risks.
transfer
insure against
retain
prevent or control
The heart of economics is
trade-offs.
wants.
resources.
decision making.
What are the three basic economic questions?
When will products be produced, how will products be produced, and how will products be
allocated
When will products be produced, what products will be produced, and how will products be
allocated
What products will be produced, how will products be produced, and how will products be
allocated
Where will products be produced, when will products be produced, and what products will
be produced
To use resources wisely, business owners must reduce
risk
reward.
waste.
wages.
In business terms, what is profit?
A good investment
A holiday bonus
A monetary reward
A risky venture
Who answers the basic economic questions in a private enterprise economic system?
Government agencies
Influential citizens
Businesses and individuals
Entrepreneurs and producers
Which one of the following groups of words best describes wants:
Limited, changing, and compensating
Unlimited, changing, and competing
Limited, unchanging, and competing
Unlimited, unchanging, and compensating
Every business must accomplish which of the following:
Produce or provide goods/services
Obtain venture capital
Issue corporate bonds
Trade or sell business assets/property
A large retailer feels that it has a duty to contribute to the well-being of society, so it donates a portion of its proceeds to a charity that helps the environment. The retailer is demonstrating
social responsibility.
wholesaling.
voluntary chains.
e-tailing.
What type of market structure is most commonly found in a private enterprise economy?
Perfect competition
Regulated monopoly
Oligopoly
Monopolistic competition
The general classifications of business risks are
competitive, strategic, financial, and operational.
production, hazard, operational, and strategic.
hazard, operational, strategic, and financial.
strategic, production, competitive, and hazard.
Which of the factors that affect profit are usually able to be controlled?
Income and expenses
expenses and pricing
Pricing and billing
Expenses and billing
The amount of money paid for raw materials and products sold is called
operating expense.
cost of goods.
net profit.
gross profit.
Malinda owns a home, and instead of living in it, she decides to rent it out to make more money. Which economic freedom does this illustrate?
Freedom to own, use, buy, and sell private property
Freedom to compete for jobs
Freedom to choose which laws to obey
Freedom to control all the money you earn
The basic role of the United States government is to
protect U.S. citizens.
maintain control of prices.
increase production.
limit business startups.
Every society must develop a system for deciding how it will use its resources so that it can
minimize risk.
meet people’s needs.
prevent problems.
control production.
Why are resources considered limited?
Everyone has them, and they change.
There are not enough available for everyone to have as much of them as desired.
There are so many that people must decide which ones to choose at any one time.
Entrepreneurs do not invest enough of them.
In economics, capital goods include
labor and management.
mental and physical work.
buildings and equipment.
trees and water.
What reflects the quantities that consumers are willing and able to buy at various prices during the same time period?
Supply
Demand
The point at which the quantity of a good that buyers want to buy equals the quantity that sellers are willing to sell at a certain price is referred to as
excess supply
equilibrium price
excess demand
The actual price that prevails in a market at any particular moment is the
.
market-clearing price
market price
The economic principle which states that the quantity of a good or service that
consumers will buy varies inversely with the price of the good or service is known as the
Law of Supply and Demand
Law of Demand
Law of Supply
The concept that the supply of a good or service will increase when the demand is great and decrease when demand is low is known as the
Law of Supply and Dema
Law of Demand
lLaw of Supply and Demand
Law of Supply
When the demand is so great that customers will buy regardless of high prices, a(n)____________market exists.
Buyer’s
Seller’s
Buying Power
economy where most goods and services are offered by private companies.
Market Command
Free
Market
The best time for consumers to purchase products at reduced prices is when a(n)
________________market exists.
Buyer’s
Seller’s
Buying Power
where the government owns and offers all the goods and services.
Market Economy
Mixed Economy
Command Economy
Into what two categories can wants be divided?
unlimited and limited
Unlimited and economics
Economic and non-economic
Unlimited and non-economic
Which of the following is the best reason for studying economics:
To find the best use for resources and supplies
To determine which occupations interest you
To learn how to invest money and express social responsibility
To prepare for effective decision making and responsible citizenship
In our economy,___________
gets the goods or services that have been produced.
the government
whoever is willing and able to pay the price
whoever is willing and able
