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WorksheetsITB- FINALS PRACTICE
Total questions: 74
Worksheet time: 37mins
Define GDP.
GDP (Gross Domestic Product) is the total dollar value of all final goods and services produced within a country in a given year.
GDP is the total population of a country in a given year.
GDP is the total exports of a country in a given year.
GDP is the total amount of money in circulation in a country in a given year.
Define inflation.
Inflation is the general increase in prices over time, reducing the purchasing power of money.
Inflation is the process of decreasing the money supply in an economy.
Inflation is the reduction in the number of goods produced in a country.
Inflation is the increase in employment rates over time.
Define nonrenewable resources.
Nonrenewable resources are natural resources that cannot be replenished quickly, such as coal, oil, and natural gas.
Nonrenewable resources are resources that can be easily replaced by natural processes within a short period of time.
Nonrenewable resources are resources that are always available in unlimited quantities.
Nonrenewable resources are resources that are produced by living organisms and can be regenerated quickly.
Define scarcity and give an example.
Scarcity is the limited availability of resources to meet unlimited wants. Example: Water scarcity in a desert region.
Scarcity is the unlimited availability of resources to meet limited wants. Example: Gold is found everywhere.
Scarcity means having more resources than needed. Example: Too much food in a famine.
Scarcity is when resources are always available. Example: Air in a sealed room.
Differentiate the law of demand and supply.
Law of Demand: As price goes up, demand goes down. Law of Supply: As price goes up, supply increases.
Law of Demand: As price goes up, demand goes up. Law of Supply: As price goes up, supply decreases.
Law of Demand: As price goes down, demand goes down. Law of Supply: As price goes down, supply increases.
Law of Demand: As price goes up, demand remains constant. Law of Supply: As price goes up, supply decreases.
Explain the 3 economic systems with examples.
Market Economy: Decisions by individuals (USA). Command Economy: Government-controlled (North Korea). Mixed Economy: Blend of both (France).
Market Economy: Government-controlled (France). Command Economy: Decisions by individuals (USA). Mixed Economy: Only private sector (North Korea).
Market Economy: Only public sector (North Korea). Command Economy: Blend of both (France). Mixed Economy: Decisions by individuals (USA).
Market Economy: Blend of both (France). Command Economy: Only private sector (USA). Mixed Economy: Government-controlled (North Korea).
How do companies compete?
Through pricing, product quality, customer service, branding, and marketing.
By ignoring customer needs and reducing product quality.
By avoiding any form of marketing or advertising.
By setting prices without considering the market or competitors.
What 4 resources does a society need to produce goods/services?
Natural resources, human resources, capital resources, and entrepreneurship.
Water, electricity, internet, and transportation.
Gold, oil, diamonds, and silver.
Technology, marketing, sales, and distribution.
What are the 5 standards of money?
Acceptability, durability, divisibility, portability, and stability.
Liquidity, profitability, tangibility, flexibility, and visibility.
Scarcity, elasticity, reliability, transparency, and volatility.
Uniformity, scarcity, flexibility, profitability, and liquidity.
What does the Federal Reserve do?
The Fed controls monetary policy, manages inflation, supervises banks, and maintains financial stability.
The Fed sets tax rates for all citizens and businesses.
The Fed creates laws for the federal government.
The Fed manages the stock market directly.
What happens when there is a shortage and demand is high?
Prices increase due to high demand and low supply.
Prices decrease due to high demand and low supply.
Supply increases to meet the demand immediately.
Demand decreases to match the low supply.
What is the difference between service and goods?
Goods are physical items (e.g., shoes); services are activities done for others (e.g., haircuts).
Goods are always more expensive than services.
Services can be stored, but goods cannot.
Goods are only digital, while services are only physical.
Identify Line A, B; Area X, Y; Point Z (Assuming this is a supply-demand graph):
Line A: Demand curve; Line B: Supply curve; Area X: Surplus; Area Y: Shortage; Point Z: Equilibrium point
Line A: Supply curve; Line B: Demand curve; Area X: Shortage; Area Y: Surplus; Point Z: Maximum price
Line A: Demand curve; Line B: Supply curve; Area X: Shortage; Area Y: Surplus; Point Z: Minimum price
Line A: Supply curve; Line B: Demand curve; Area X: Surplus; Area Y: Shortage; Point Z: Equilibrium quantity
Explain Points A, B, C, D on the Business Cycle:
A: Expansion – economy growing; B: Peak – highest point; C: Contraction – economy shrinking; D: Trough – lowest point
A: Peak – economy shrinking; B: Expansion – highest point; C: Trough – economy growing; D: Contraction – lowest point
A: Trough – economy growing; B: Contraction – highest point; C: Expansion – economy shrinking; D: Peak – lowest point
A: Contraction – economy growing; B: Trough – highest point; C: Peak – economy shrinking; D: Expansion – lowest point
Define Accountant
A professional who records, analyzes, and reports financial transactions.
A person who repairs vehicles.
A professional who provides medical treatment to animals.
A person who designs buildings.
Define blue chip stock.
Stock of a large, stable, well-known company with a reliable history of growth.
Stock of a small, newly established company with high risk.
Stock of a company that only operates in the technology sector.
Stock of a company that has recently gone bankrupt.
Define growth stocks. (Fill in the blank)
Stocks expected to grow at an above-average rate compared to others.
Stocks that pay high dividends regularly.
Stocks that are only found in the technology sector.
Stocks that have a fixed interest rate.
Define income stocks. (Fill in the blank)
Stocks that pay regular dividends, often from established companies.
Stocks that are primarily focused on rapid growth and reinvest all profits.
Stocks that are only traded on foreign exchanges.
Stocks that do not pay any dividends and are highly speculative.
Give examples of assets, liabilities, and owner's equity. (Fill in the blank)
Assets: Cash, equipment; Liabilities: Loans; Owner's Equity: Owner's investment in the business.
Assets: Rent, salaries; Liabilities: Furniture; Owner's Equity: Bank loan.
Assets: Owner's investment; Liabilities: Cash; Owner's Equity: Equipment.
Assets: Loans, owner's equity; Liabilities: Cash, equipment; Owner's Equity: Rent.
What is a diversified portfolio? (Fill in the blank)
A mix of different investments to reduce risk.
A portfolio consisting only of stocks from one company.
Investing all your money in real estate.
A savings account with a fixed interest rate.
What are the CPA requirements? (Fill in the blank)
Bachelor's degree in accounting, passing the CPA exam, experience, and licensing.
High school diploma, passing the bar exam, internship, and certification.
Associate's degree in business, passing the GRE, volunteer work, and registration.
Master's degree in finance, passing the CFA exam, research, and fellowship.
What is the accounting equation? (Fill in the blank)
Assets = Liabilities + Owner's Equity
Assets = Owner's Equity - Liabilities
Liabilities = Assets + Owner's Equity
Owner's Equity = Assets - Liabilities
What is the difference between a bear and bull market? (Fill in the blank)
Bear: Market declining; Bull: Market rising
Bear: Market rising; Bull: Market declining
Bear: Market stable; Bull: Market volatile
Bear: Market unpredictable; Bull: Market predictable
What is the difference between capital gain and loss? (Fill in the blank)
Gain: Sell asset for more than you paid
Gain: Sell asset for less than you paid
Gain: Buy asset for more than you sold
Gain: Buy asset for less than you sold
What is the Dow Jones Industrial Average?
A stock market index of 30 major U.S. companies.
A government bond issued by the U.S. Treasury.
A type of mutual fund for international stocks.
A measure of inflation in the U.S. economy.
Which industry is least affected by the business cycle?
Utilities (electricity, water)
Automobile manufacturing
Construction
Luxury goods
Why is inflation rate important for investing?
High inflation can reduce the real return on investment.
It guarantees higher profits for all investors.
It eliminates all investment risks.
It ensures stock prices always rise.
What is a T-Account?
Visual tool for recording debits on the left and credits on the right.
A type of bank account used for savings.
A financial statement showing company profits.
A method for calculating interest rates.
Paid cash on an account to Home Depot – what happens?
Decrease in cash and decrease in liabilities.
Increase in cash and increase in liabilities.
Increase in cash and decrease in liabilities.
Decrease in cash and increase in liabilities.
Paid cash for equipment – what happens?
Decrease in cash, increase in assets (equipment).
Increase in cash, decrease in assets (equipment).
Increase in cash, increase in liabilities.
No change in assets or cash.
Gain/Loss: Buy 200 shares at 103.50,sellat 117.00, $15 commission. What is the gain?
$2,670
$2,585
$2,400
$2,785
Rate of return on Home Depot transaction. Return = Gain / Original Investment = 2,670/ 20,715 ≈ ?
12.9%
8.7%
15.4%
10.2%
The close from the day before was:
$100
$150
$200
$250
How much was the dividend?
$2
$5
$10
$20
Nike tweet controversy – effect on stock? Fill in the blank: Negative publicity may cause stock price to ______ temporarily.
drop
rise
stabilize
double
Apple beats earnings – effect on stock? Fill in the blank: Likely ______ in stock price due to positive investor sentiment.
increase
decrease
stagnation
volatility
Which of the following is an example of an autocratic management style?
Boss makes all decisions
Team input
Hands-off approach
Which management style involves team input?
Autocratic
Democratic
Laissez-faire
Which management style is described as a hands-off approach?
Autocratic
Democratic
Laissez-faire
Explain target market. Fill in the blank: A target market is a specific group of ______ a business aims to reach.
consumers
products
investors
employees
What are the 4Ps of marketing? Fill in the blanks: Product (what you sell), Price (cost to customer), Place (where it's sold), ______ (advertising and selling).
Promotion
Planning
Packaging
Positioning
List one advantage and one disadvantage of entrepreneurship. Fill in the blanks: Advantage: ______, potential profit. Disadvantage: Risk, ______ hours.
Independence; long
Teamwork; short
Stability; flexible
Routine; fixed
Characteristic of future leaders: _________
Visionary and adaptable
Stubborn and inflexible
Uninformed and passive
Short-sighted and reactive
Situational leadership theory: Leadership style should change based on ________ and ________ involved.
situation, people
time, money
location, resources
experience, age
What is a business plan?
A written document outlining goals and strategies of a business.
A type of marketing campaign.
A government regulation for businesses.
A financial statement for tax purposes.
What is a franchise?
A business where you buy the rights to operate using another company's brand.
A type of government organization.
A type of insurance policy.
A type of loan from a bank.
Franchise characteristics: ________, training, fees, limited freedom.
Brand recognition
Product variety
Employee ownership
Government funding
What is advertising?
Paid promotion of a product or service.
A type of government regulation.
A method of product manufacturing.
A form of customer feedback.
What is direct marketing?
Targeted marketing to individual consumers (e.g., emails, catalogs).
Mass advertising through television and radio.
Selling products only through retail stores.
Marketing only through social media influencers.
What is distribution (Place)?
How a product gets from the manufacturer to the consumer.
The process of setting the price for a product.
The method of advertising a product to customers.
The way a product is designed and developed.
What is marketing?
The process of promoting and selling products or services.
A method of manufacturing goods.
A way to transport products.
A type of financial accounting.
Traits of successful entrepreneurs: Risk-taking, creative, self-motivated, _________?
goal-oriented
careless
indecisive
pessimistic
unmotivated
Demographics, Psychographics, Geographics: Fill in the definitions for each term.
- Demographics: Age, gender - Psychographics: Lifestyle, values - Geographics: Location
- Demographics: Location - Psychographics: Age, gender - Geographics: Lifestyle, values
- Demographics: Values, location - Psychographics: Gender, age - Geographics: Lifestyle
- Demographics: Lifestyle, location - Psychographics: Age, values - Geographics: Gender
Why is competition good for consumers?
Encourages better prices, quality, and innovation.
Reduces the variety of products available.
Leads to higher prices for everyone.
Limits consumer choices.
What are the advantages of trading internationally?
Access to new markets, cheaper goods, more choices
Higher taxes and fewer choices
Limited access to resources
Decreased competition
Name four international business environment factors.
Geography, economy, culture, politics
Weather, language, sports, food
Technology, fashion, music, art
Education, health, entertainment, tourism
What does the bailiff do?
Maintains courtroom order and assists the judge.
Prosecutes criminal cases in court.
Defends the accused in court.
Serves as the head of the jury.
What is a code of ethics?
Set of guidelines for ethical behavior in business.
A list of company products.
A government regulation for taxes.
A type of computer programming code.
Absolute vs. Comparative Advantage: Fill in the definitions. - Absolute: ________ - Comparative: ________
- Absolute: Can produce more - Comparative: Lower opportunity cost
- Absolute: Lower opportunity cost - Comparative: Can produce more
- Absolute: Uses fewer resources - Comparative: Higher opportunity cost
- Absolute: Higher opportunity cost - Comparative: Uses fewer resources
Define Export and Import.
Export: Selling goods or services to another country. Import: Buying goods or services from another country.
Export: Buying goods or services from another country. Import: Selling goods or services to another country.
Export: Selling goods or services within the same country. Import: Buying goods or services from the same country.
Export: Buying goods or services from another country. Import: Selling goods or services within the same country.
What does 'Export' mean?
Sell goods abroad
Buy goods from abroad
Store goods in a warehouse
Produce goods locally
What does 'Import' mean?
Buy goods from other countries
Sell goods to other countries
Make goods within the country
Transport goods within a city
What is a disadvantage of international trade?
Job loss, dependency on other nations
Increased local employment
Greater self-sufficiency
Reduced access to foreign goods
Who conducts direct examination in court?
By own lawyer
By the judge
By the opposing lawyer
By the jury
Who conducts cross examination in court?
By opposing lawyer
By judge
By witness
By police officer
What is a trade surplus?
More exports than imports
More imports than exports
Equal exports and imports
No trade at all
What is a trade deficit?
More imports than exports
More exports than imports
Equal imports and exports
No international trade
What does 'Leading' mean in court terminology?
Suggests answer
Objects to evidence
Requests a recess
Refers to a witness
What does 'Hearsay' mean in court terminology?
Not firsthand
A legal document
A type of evidence allowed in all cases
A judge's opinion
What does 'Irrelevant' mean in court terminology?
Not related to case
Very important to the case
A type of evidence
A legal document
What is the purpose of an opening statement in court?
Introduce case
Present evidence
Announce verdict
Cross-examine witnesses
What is the purpose of closing arguments in court?
Summarize case
Present new evidence
Question witnesses
Announce the verdict
What is perjury?
Lying under oath in court
Stealing from a store
Breaking a traffic law
Failing to pay taxes
Cheating on a test
When would a judge excuse a juror?
If the juror is biased, ill, or unable to perform duties.
If the juror arrives early to court.
If the juror asks for a break during the trial.
If the juror wears formal clothing to court.
