WorksheetsEconomics Final Review
Total questions: 86
Worksheet time: 1hrs 8mins
What is capitalism?
Government ownership of all companies
Private ownership of companies aiming for profit through innovation
A system where all companies share profits equally
A market with no competition
What does the term "competition" refer to in business?
Cooperation between companies
Rivalry among companies selling similar products/services
Government control of companies
Sharing resources between companies
Which type of competition involves companies offering the same product or service?
Indirect competition
Direct competition
Non-price competition
Oligopoly
What is a monopoly?
Many companies selling similar products
One company controls the supply of a product/service
Companies competing on price
Government regulation of all companies
What is primary data?
Data collected by someone else
Directly collected information
Data from books and articles
Data that is outdated
What is the main characteristic of an oligopoly?
Many suppliers with low barriers to entry
A market controlled by a few companies, with high barriers to entry
Only one company in the market
No competition at all
Which of the following best describes non-price competition?
Attracting customers through features other than price
Competing by offering lower prices
Selling the same product as competitors
Government setting prices
What is secondary data?
Data you collect yourself
Pre-collected information from other sources
Data that is always accurate
Data that is never used in business
Which market structure is characterized by many companies offering similar products at similar prices?
Monopoly
Oligopoly
Pure competition
Monopolistic competition
What is price competition?
Attracting customers by offering unique features
Competing by offering lower prices
Working together to set prices
Ignoring prices completely
Which of the following is an example of indirect competition?
Two pizza restaurants in the same town
A movie theater and a bowling alley both offering entertainment
Two brands of the same soda
Two companies selling the same smartphone
How does monopolistic competition differ from pure competition?
Monopolistic competition has only one supplier
Monopolistic competition involves product differentiation for price advantage
Pure competition has high barriers to entry
Pure competition has only a few companies
Why might a government allow a regulated monopoly?
To encourage more competition
For efficiency under government supervision
To eliminate all competition
To increase prices for consumers
A new company wants to enter a market controlled by a few large firms. What type of market structure is this, and what challenge might the new company face?
Monopoly; no competition
Oligopoly; high barriers to entry
Pure competition; low prices
Monopolistic competition; product differentiation
A company collects information by surveying its customers. What type of data is this?
Secondary data
Primary data
Indirect data
Regulated data
A company is the only supplier of electricity in a city, but its prices and services are controlled by the government. What is this an example of?
Pure competition
Regulated monopoly
Oligopoly
Monopolistic competition
Suppose two companies sell different products, but both satisfy the same customer need. What type of competition is this?
Direct competition
Indirect competition
Price competition
Monopoly
A new smartphone company wants to compete in a market where many companies already offer similar phones at similar prices. What strategy could help it stand out, and why?
Lowering prices, because price is the only factor in pure competition
Offering unique features, because non-price competition can attract customers
Merging with another company, because monopolies are more profitable
Ignoring customer needs, because competition is not important
Imagine you are starting a business and need information about your potential customers. Would you use primary or secondary data, and what are the advantages of your choice?
Primary data, because it is directly collected and specific to your needs
Secondary data, because it is always more accurate
Secondary data, because it is never outdated
Primary data, because it is always free
Complete the outline with the correct term.
The Six Functions of Business 1. Human Resources 2. Strategy 3. Information Management 4. (a) 5. Marketing 6. Finance/Accounting Select an answer from the options below.
Customer Service
Mission
Vision
What is the definition of business?
A route or plan of action designed to achieve certain organizational goals and objectives.
A for-profit or non-profit organization involved in commercial, industrial, or professional commerce.
Improving existing products and developing new products in order to meet customer demands.
Collecting, organizing, storing, and securing relevant data and information.
A company’s purpose, reason for being, and problem it is solving is its:
Mission
Vision
Strategy
Goal
Which business function is about collecting, organizing, storing, and securing relevant data and information in order to make informed decisions?
Strategy
Information Management
Human Resources
Marketing
Which business function is the enterprise and pursuit of ideation, creation, communication, and delivery of profitable products and services to targeted customers for their benefit and for the benefit of society as a whole?
Human Resources
Information Management
Marketing
Strategy
What is the process of recording, maintaining, and reporting an organization’s financial transactions and records?
Accounting
Finance
Marketing
Strategy
Goods and services a country produces and sells to other countries
imports
exports
demand
supply
Goods and services brought in from other countries
supply
exports
imports
tariff
What is inflation?
decrease in prices of products in an economy
rise in most prices of products in an economy
rise in some prices of products in an economy
increase in average price levels of all products in an economy
A higher GDP generally correlates to a(n) ___________ standard of living.
higher
lower
unrelated
Which of the following is not one of the three basic questions economists try to solve?
What should be produced?
How should it be produced?
Who gets what is produced?
When should it be produced?
What is supply?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
What is demand?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
Why is diversification a recommended investment strategy?
A diversified portfolio guarantees no loss
Diversification leads to lower fund manager fees
Diversification helps reduce risk
Diversification guarantees high returns
What are the 3 basic economic questions?
When to buy?
What to produce?
How to produce it and how much to produce of it?
How to invest it?
For whom to produce it for?
Name the 4 factors of production and their incomes:
Labor = Wages
Land = Rent
Capital = Interest
Entrepreneurship = Capital
Minerals = Dividends
What is a Bond?
A loan to a government or business.
A fraction of ownership in a company.
A rule set by the government concerning the printing of money.
The receipt a bank prints to show income on your taxes.
What is a stock?
A loan given to a government or business.
A fraction of ownership in a corporation.
A rule set by the government about the printing of money.
Proof of income for your taxes.
Shares of a company are also known as
Stocks
Bonds
Credit
Onions
Why is it important to begin investing for retirement early?
Compound interest
More time to save
Retiring is expensive
All of these
A period of temporary economic decline during which trade and industrial activity are reduced.
World Bank
Recession
Embargo
Pandemic
The study of the behaviors and decisions made by individuals, households, and firms; economic decisions of individuals and firms/ producers and consumers. (HINT: SMALL)
Microeconomics
Macroeconomics
Command Economies
Gross Domestic Product
Which agency makes sure we are safe at work?
FDA
FTC
OSHA
EPA
This agency makes sure that our medication is safe
FTC
FDA
EPA
OSHA
This agency makes sure our air and water sources are protected and safe.
FTC
EPA
FDA
OSHA
This agency makes sure that businesses are fair and honest
FTC
FDA
EPA
OSHA
A saving account in a bank represents the function of money:
Store of value
A medium of exchange
A standard for deferred payments
A measure of value
Money or other substance generally accepted as payment for goods and services.
Measure of value
Medium of exchange
Scarcity
Store of Value
A student records her income and spending for past month, she uses the function of money
Medium of exchange
Standard of deferred payments
Unit of measurement
Store of value
A saving account in a bank represents the function of money:
Store of value
A medium of exchange
A standard for deferred payments
A measure of value
An organization of workers dedicated to protecting members' interests and improving wages, hours and working conditions for all.
Labor Union
Workers Rights
Worker Strikes
Collective Bargaining
The negotiation of wages and other conditions of employment by an organized body of employees
Labor Unions
Workers Rights
Worker Strikes
Collective Bargaining
Your net worth is your ________ minus your ________
assets; liabilities
liabilities; assets
stocks; bonds
paycheck; deductions
What is something you already own (positive cash value)?
asset
liability
What is debts you owe (negative cash value)?
assets
liabilities
MONEY IN A SAVINGS ACCOUNT
asset
liability
CAR LOAN
asset
liability
What does the M in SMART stand for?
Maximum - there are no limits for goals
Memorable - a goal must be easily remembered
Measurable - a goal must have some kind of number attached so you have a way to know if you are reaching the goal.
Mental - you have to be able to think about the goal.
What does the A in SMART stand for?
Attainable - a goal must be reachable; you CAN do it.
Admirable - a goal must impress people.
Artistic - a goal must be creative.
Academic - a goal must be scholarly and oriented towards learning.
What do the letters GDP stand for?
(a)
Which of the following best describes market share?
The percentage of total sales your company generates compared to the entire market.
The percentage of your product's sales compared to competitor sales.
The total revenue generated by your company in the market.
The number of customers who purchase your product.
