Font size
Worksheets1st Semester Introduction to Business Final Chapters 1-5
Total questions: 100
Worksheet time: 50mins
Which of the following statements is true about needs?
Needs are not important.
Needs add to the quality of life.
Needs are limited.
Needs are essential.
What do wants do according to the learning material?
Wants are essential.
Wants are not important.
Wants add to the quality of life (desires).
Wants are limited.
Which of the following is true about needs and wants?
Needs and wants are essential.
Needs and wants are limited.
Needs and wants are unlimited.
Needs and wants are not important.
What is the main difference between a need and a want?
Needs are those things required to live and function, such as food, clothing, and shelter.
Wants are those things required to live and function, such as food, clothing, and shelter.
Wants are things that are necessary for survival, such as clean air and health care.
Needs are things that add comfort and pleasure to our lives, such as television and movies.
Which of the following is an example of a want?
Television
Clothing
Food
Clean air
Which of the following is NOT considered a need?
Education
Job
Latest smartphone
Health care
Which country is the largest producer of goods and services in the world?
Japan
Germany
United States
China
In 2013, the United States produced more than which two countries combined?
Japan and Germany
India and China
China and Japan
China and Germany
Which country is the world's largest consumer?
United States
Japan
China
Germany
From what type of economy did the United States shift to an industrialized economy?
Technology-based economy
Agriculture-based economy
Manufacturing-based economy
Service-based economy
What are goods?
Activities that are consumed at the same time they are produced. You can't take them home.
Items that are always available in unlimited quantities.
Services that do not provide any utility or usefulness.
Physical products that satisfy human wants and needs, provide utility or usefulness, and are scarce. You can take them home.
What are services?
Products that do not provide any utility or usefulness.
Physical products that satisfy human wants and needs.
Items that are always available in unlimited quantities.
Activities that are consumed at the same time they are produced.
Which of the following statements is true?
A person that ate in a restaurant paid for goods only.
A supermarket provides goods and services.
Goods satisfy only the needs of the individuals.
Doctors provide good and services.
Which of the following statements is true about services?
A supermarket provides only services.
When people visit museums they pay for goods.
A restaurant provides services.
Stores mostly provide services.
Which of the following is included in natural resources?
Computers
Land
Human effort
Management skills
What do human resources refer to?
Human effort used in production (jobs)
Vision and risk-taking
Tools and machinery
Natural resources like minerals
Which of the following is an example of capital resources?
Vision and management skills
Manual labor
Factories
Water
Entrepreneurship involves _____
Physical and mental work
Tools and machinery
Vision, risk-taking, and management
Natural resources
What are the three types of economic resources?
Natural Resources, Human Resources, Capital Resources
Human Resources, Financial Resources, Capital Resources
Natural Resources, Financial Resources, Capital Resources
Natural Resources, Human Resources, Financial Resources
Which of the following is an example of a natural resource?
Money
Trees
Buildings
Labor
Which of the following is an example of a human resource?
Minerals
Water
Tools
Labor
Which of the following is an example of a capital resource?
Land
Trees
Animals
Buildings
Scarcity is defined as _______.
Not having enough resources to satisfy the needs and wants.
Having more than enough resources to satisfy people's needs and wants.
Having just enough resources to satisfy the needs and wants.
Having an abundance of resources.
What happens when the demand for a good or service is greater than its availability?
There is a surplus of the good or service.
The good or service becomes obsolete.
The price of the good or service decreases.
Scarcity occurs.
Scarcity describes a situation where resources are insufficient to produce enough goods and services to satisfy all of society's desires and needs. Which of the following is an example of such a resource?
Finished products
Luxury items
Raw materials
Consumer goods
What does economic decision making involve?
Choosing among alternatives in the context of unlimited resources and unlimited wants
Choosing among alternatives in the context of limited resources and limited wants
Choosing among alternatives in the context of limited resources and unlimited wants
Choosing among alternatives in the context of unlimited resources and limited wants
What is the main goal of economic decision making?
To allocate unlimited resources efficiently to maximize benefits and minimize costs
To allocate scarce resources efficiently to minimize benefits and maximize costs
To allocate scarce resources inefficiently to maximize benefits and minimize costs
To allocate scarce resources efficiently to maximize benefits and minimize costs
What does the concept of trade-off refer to in economics?
Giving up one thing in order to gain something else
Gaining everything without giving up anything
Gaining one thing without giving up anything
Giving up everything to gain nothing
The owner of a store bought five tables in 40,andestablishedapriceof 70. Two of them were sold last week. What was the profit?
$40
$70
$30
$60
What does the term "Opportunity Cost" represent?
The value of the next best alternative that is forgone
The cost of the chosen option
The value of the best alternative chosen
The total cost of all alternatives
Juan went to the store and saw two pairs of shoes that he liked. One was 98andtheotherwas 78. Juan bought the pair that cost $78. What was the opportunity cost?
$20
$98
$176
$78
What are financial decisions based on?
Abundance
Scarcity
Trade-offs
Opportunity costs
What is an example of a financial decision based on scarcity?
Selecting a new car model
Choosing a vacation destination
Family deciding how to spread their income among the things they need and want
Deciding which movie to watch
What is a trade-off?
When you gain something without losing anything
When you make a decision without any alternatives
When you choose the best option available
When you give up something to have something else
When the prices go up, the amount of people that are willing to pay go down.
True, that is called the curved of demand.
True, that is called the curve of supply
True, that is call the market place.
False
What should the benefit from your choice be compared to the next-best choice?
It should be equal to the benefit from the next-best choice
It should not comparable to the benefit from the next-best choice
It should be less than the benefit from the next-best choice
It should be greater than the benefit from the next-best choice
What is the basic economic problem?
The balance between supply and demand
The surplus of goods and services
The abundance of resources and limited wants
The mismatch of unlimited wants and needs and limited economic resources
What is the first step in the decision-making process?
Identify the choices.
Define the problem.
Evaluate the advantages and disadvantages of each alternative.
Choose the best alternative.
What is the final step in the decision-making process?
Act on your choice.
Identify the choices.
Choose the best alternative.
Review your decision.
Which step comes immediately after choosing the best alternative?
Define the problem.
Identify the choices.
Act on your choice.
Review your decision.
What is one of the three economic questions?
What is the capital of France?
How will the goods and services be produced?
What is the speed of light?
Who invented the telephone?
Which of the following is NOT one of the three economic questions?
What goods and services will be produced?
What is the population of the world?
What needs and wants will be satisfied with the goods and services produced?
How will the goods and services be produced?
In a command or planned economy, __________ own and control the resources.
International corporations
Private individuals
Non-governmental organizations
Government officials
In a command or planned economy, who decides what and how goods are produced and how they will be distributed and consumed?
Market forces
Consumers
Government officials
Private companies
How are the three economic questions answered in a market economy?
By individuals through buying and selling of goods and services.
By the government through regulations.
By foreign investors through investments.
By private corporations through business strategies.
What is considered a marketplace in a market economy?
Only online platforms like Internet business offices.
Any place where goods and services are exchanged, including supermarkets, Internet business offices, and flea markets.
Only traditional markets like flea markets.
Only physical stores like supermarkets.
What is the primary focus of a traditional economy?
Promoting international trade
Meeting the basic needs of people such as food, clothing, and shelter
Developing advanced technological systems
Maximizing profits for businesses
Which of the following is NOT a characteristic of a traditional economy?
Centered on meeting basic needs
Focuses on advanced technological systems
Provides food, clothing, and shelter
Lacks formal structures
Traditional economies are not common but they are typically found in ______.
Advanced technological societies
Highly industrialized nations
Developing countries
Urban areas
What are the main differences among the three economic systems?
The main differences are found in the types of goods produced.
The main differences are found in the ways in which the three economic questions are answered.
The main differences are found in the levels of economic growth.
The main differences are found in the levels of government control.
What is another name for the U.S. economic system?
Socialism
Feudalism
Capitalism
Communism
In the U.S. economic system, who owns the economic resources?
Non-profit organizations
Private individuals
Foreign investors
The government
The main characteristic of capitalism as described in the U.S. economic system is ______.
Government control of resources
Private ownership of resources
Equal distribution of resources
Collective ownership of resources
In a capitalist system, who decides what to produce with the resources they own?
The government
Community leaders
Individual owners
International organizations
In a capitalist system, who decides how to use their money to purchase products and services?
The government
Financial institutions
Individual consumers
Business corporations
What does "private property" mean in the U.S. economic system?
You can own, use, or dispose of things of value.
You can only rent things of value.
You must share all things of value with the government.
You cannot own anything of value.
What does "freedom of choice" allow you to do in the U.S. economic system?
Make economic decisions independently and accept the consequences.
Make economic decisions for others.
Make economic decisions only with government approval.
Avoid any consequences of economic decisions.
What is "profit" in the context of the U.S. economic system?
The money left after all the cost of operating a business have been paid.
The total revenue before any costs are paid.
The initial investment in a business.
The money given to the government after taxes.
Choose the one that matches the description for MARKET ECONOMY.
Combines elements of market, command or traditional economies.
Resources are owned and control by the people.
Resources are own and control by the government.
Economic decisions are based on customs and traditions.
Choose the one that matches the description for TRADITIONAL ECONOMY.
Resources are own and control by the government.
Economic decisions are based on customs and traditions.
Combines elements of market, command or traditional economies.
Resources are owned and control by the people.
Choose the one that matches the description for MIXED ECONOMY.
Economic decisions are based on customs and traditions.
Combines elements of market, command or traditional economies.
Resources are owned and control by the people.
Resources are own and control by the government.
Choose the one that matches the description for COMMAND ECONOMY.
Combines elements of market, command or traditional economies.
Economic decisions are based on customs and traditions.
Resources are owned and control by the people.
Resources are own and control by the government.
What might be some good reasons that a computer is a need and not a want?
To do homework
To check Facebook
To watch Netflix
To do work for a job
The money businesses earn is called?
loss
expenses
profit
income
The costs to run a business are called _____________.
loss
expenses
profit
income
Who comes up with an idea and uses that idea to start a business?
entrepreneur
free enterprise
consumer
public services
Suppose that at the current price, sellers are willing and able to sell less of a product than buyers are willing and able to buy. (i.e. There is a "shortage" in the market). What will likely happen in this market?
price will fall
Price will rise
Suppose that at the current price, sellers are willing and able to sell more of a product than buyers are willing and able to buy. (i.e. There is a "surplus" in the market). What will likely happen in this market?
price will fall
Price will rise
In a free and competitive market, price will tend to move towards the ____________ price, the price at which quantity demanded equals quantity supplied.
government-mandated
equilibrium
retailed
regulated
If consumers begin liking a product less than they used to __________ ___________.
supply decreases
supply increases
demand decreases
demand increases
Productivity would likely increase as a result of
decreased training programs.
lower government spending.
higher taxes.
expanded production technology.
Retail sales include
school supplies bought by students.
taxes collected.
borrowing by a business.
companies buying new equipment.
Equity refers to
borrowing to finance a capital project.
increased government taxes.
reduced spending by government.
ownership in a company or other asset.
If you purchase a bond from a business, you own a part of that business.
False
True
If a company has higher earnings, less people will want to buy its stock.
True
False
When consumers increase their borrowing, interest rates tend to decline.
False
True
The phase of the business cycle in which unemployment is highest is
depression
recession
recovery
prosperity
People with poor credit ratings pay a higher interest rate to borrow money than people with good credit ratings.
True
False
In the United States, the labor force consists of all people above age who are actively working or seeking work.
18
16
14
21
The money for capital projects usually comes from
bonds
personal savings
stock investments
all are correct answers
The movement of the economy from one condition to another and back again.
recession
deflation
inflation
business cycle
Is a substantial increase in the prices.
business cycle
inflation
recession
deflation
Is a decrease in the prices.
deflation
recession
inflation
business cycle
A period of temporary economic decline (two quarters of a year).
depression
recession
inflation
prosperity
The main cause of unemployment is reduced demand for the goods and services being provided by various workers.
True
False
People who buy goods and services.
consumers
creditors
debtors
owners
People who lend money.
consumers
creditors
debtors
owners
People who own assets.
consumers
debtors
creditors
owners
Is trade essential?
Yes
No
People who owe money.
consumers
owners
debtors
creditors
The total amount owed by the federal government is called the
balanced budget
national debt
budget surplus
budget deficit
Inflation
causes the buying power of the dollar to increase
is least harmful to people on fixed incomes
can sometimes stimulate economic activity if it is kept relatively low
generally occurs at the same rate from year to year
The exchange of goods and services by sale or barter driven by the need for resources.
Trade
Globalization
Standard of Living
Fair Trade
Sending goods to another country to sell.
export
import
Bringing goods in from another country to sell.
export
import
A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (money to assist an industry so prices can remain low).
Free Trade
Goods and Services
Supply and Demand
Trade War
A large company such as McDonalds that has operations in more than one country.
Domestic Corporation
Multinational Corporation
State Corporation
Foreign Corporation
The development of a worldwide economy where resources flow fairly freely across borders.
Economy
Economic Independence
GDP
Globalization
What does the foreign exchange market rely upon to determine currency values?
International treaties
Government regulations
Global stock market trends
Supply and demand of money
Which of the following is true about exchange rates?
Global exchange rates are compared to the Euro
Exchange rates refer to the value of one country's currency against another's
Exchange rates are managed by domestic markets
Countries only accept trade in foreign currency
