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I2B Outcome 2 Assessment Review

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

Which of the following best explains why scarcity is a fundamental issue in economics?

a)

Resources are unlimited and can meet all human desires.

b)

People's wants and needs exceed the available resources.

c)

Producers always create more goods than are needed.

d)

Consumers never have to make choices about what to buy.

2.
1a. In your own words, define economics. 1b. Why is it important to understand economics?
a)
Economics is the study of historical events and their impact on society, which is essential for cultural understanding.
b)
Economics focuses on the distribution of wealth among individuals, making it vital for personal finance management.
c)
Economics examines the behavior of animals in their habitats, helping us understand ecological balance.
d)
Economics is the study of resource allocation and decision-making in the face of scarcity, and understanding it is crucial for informed decision-making and policy evaluation.
3.

Arjun has a limited amount of money to spend each month. How does scarcity influence the choices Arjun makes about what to buy?

a)

A. It removes the need for decision-making

b)

B. It allows Arjun to get everything he wants

c)

C. It forces Arjun to prioritize what he values most

d)

D. It increases the number of resources available

4.

3. A student decides to spend Saturday night studying for an economics exam instead of attending a friend's birthday party. From an economic perspective, what concept is most directly illustrated by this scenario?

(a)  

5.
4. When businesses focus on producing goods or services they can create most efficiently, they are practicing:
a)
Resource hoarding
b)
Economic isolation
c)
Specialization
d)
Market monopolization
6.
In your own words, explain how the global marketplace has changed in recent decades. Describe at least two benefits and two drawbacks of this change for consumers, workers, or businesses.
4 lines
7.

When more businesses enter a market, what typically happens to the prices of goods and services?

a)

Prices tend to rise significantly

b)

Prices generally remain unchanged

c)

Prices tend to fall

d)

Prices become unpredictable

8.
8. The Law of Demand states that
a)
A higher price leads to a lower quantity demanded
b)
A higher quantity demanded is a result of more expensive items
c)
An increase in price leads to an increase in quantity supplied
d)
Demand and supply both increase when price increases
9.
9. According to the Law of Supply, what happens when the price of a product increases?
a)
The quantity supplied decreases
b)
The quantity supplied increases
c)
The supply curve shifts to the left.
d)
The demand for the product increases
10.
Which scenario best illustrates the law of supply in action?
a)
A. A bakery lowers price and sells more loaves.
b)
B. A technology company raises price and decreases production.
c)
C. A furniture maker raises price and increases the number of pieces made.
d)
D. A clothing retailer lowers price and buys fewer items.
11.
Give one real-world example of the law of demand. Explain why it demonstrates the law.
4 lines
12.
Give one real-world example of the law of supply. Explain why it demonstrates the law.
4 lines
13.

Which of the following best represents ethical behavior in a business context?

a)

Maximizing shareholder value at any cost

b)

Following moral principles and standards

c)

Aggressive advertising campaigns

d)

Ignoring employee welfare

14.

Daniel owns a small business and wants to ensure his workplace is accessible to all employees. He researches legislation that was enacted to improve accommodations for physically challenged workers. What was the primary purpose of the Americans with Disabilities Act?

a)

To mandate hiring quotas

b)

To improve accommodations for physically challenged workers

c)

To provide tax breaks for businesses

d)

To create separate workplace environments

15.

Arjun owns a company and is deciding how to run his business. Which of the following best describes a socially committed business?

a)

A business that only focuses on making profits for shareholders

b)

A business that avoids community involvement to reduce costs

c)

A business that takes actions to benefit society and the environment

d)

A business that only follows legal regulations without additional efforts

16.

Which action best shows a company's support for employee well-being?

a)

Discouraging work-life balance

b)

Offering mental health resources

c)

Reducing paid leave

d)

Ignoring workplace stress

17.

Which of the following is a common drawback for entrepreneurs who choose to operate under a franchise agreement?

a)

Guaranteed business failure

b)

No control over financial decisions

c)

Limited ability to implement personal ideas

18.

Which of the following best describes the typical payment structure in a franchise relationship?

a)

A single upfront licensing fee

b)

A fixed annual bonus

c)

Regular royalty payments with ongoing franchisor support

d)

A temporary lease agreement

19.
Which characteristic makes a sole proprietorship uniquely challenging compared to other business structures?
a)
Minimal government regulation
b)
Simple tax filing process
c)
Complete personal liability for business debts
d)
Low startup costs
20.
How might unlimited liability potentially impact a sole proprietor's personal financial security?
a)
No significant risk
b)
Limited financial exposure
c)
Business debts could consume personal assets
d)
Only affects business bank accounts
21.

17. Ron has experience in restaurant accounting and management, but lacks hands-on kitchen management skills. Discuss how choosing to operate a franchise restaurant could benefit Ron compared to starting an independent restaurant from scratch.

4 lines
22.
17. Chose one of the following business organization types and give an advantage and disadvantage of each: Sole Proprietorship Partnership Corporation Franchise
4 lines