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Introduction To Business Mid-term

50 Questions
Business Quizzes & Trivia

Introduction to Business Test Encompasses first six weeks of class

Questions and Answers
  • 1. 
    What are needs considered?
    • A. 

      Necessary Wants such as food, shelter, and clothing

    • B. 

      Extraneous wants that include basketballs, softballs, football, or dance shoes

    • C. 

      Luxury Items

  • 2. 
    A good can be physically weighed or measured.
    • A. 

      True

    • B. 

      False

  • 3. 
    A service is....
    • A. 

      Task that people or machines perform

    • B. 

      Product offered by individual businesses

    • C. 

      Business ideas provided by entrepreneurs

  • 4. 
    Most people have unlimited wants for goods and services.
    • A. 

      True

    • B. 

      False

  • 5. 
    The United States of America employs what type of economic system?
    • A. 

      Mixed Economy

    • B. 

      Socialism

    • C. 

      Free Enterprise

    • D. 

      Marxism

  • 6. 
    What is an economic plan?
    • A. 

      A government program specifying economic activities

    • B. 

      A government program for how to develop nuclear activities

    • C. 

      A business idea that seeks to increase profits

  • 7. 
    Which of the following is an example of the free rider problem?
    • A. 

      Students receiving free education via property taxes

    • B. 

      People buying Apple products

    • C. 

      Businesses providing individual services during the recession

  • 8. 
    Which economist started the whole economics field?
    • A. 

      Adam Smith

    • B. 

      John Maynard Keynes

    • C. 

      Alfred Marshall

    • D. 

      Karl Marx

  • 9. 
    A loss is best defined as ...
    • A. 

      The amount of money by which total cost exceeds total revenue

    • B. 

      The amount of credit by which total revenue exceeds total revenue

    • C. 

      The amount of ethical dilemmas present in a company's integrity

  • 10. 
    If total revenue was $100.00 If total cost was $35.00 Your total profit is $65.00
    • A. 

      True

    • B. 

      False

  • 11. 
    Microeconomics is best described as...
    • A. 

      The branch of economics that deals with human behavior and choices

    • B. 

      The branch of economics that deals with big picture thinking

    • C. 

      The branch of economics that specifies what businesses should buy

  • 12. 
    Choice in terms of economics is best explained as...
    • A. 

      Making a decision based on scarcity

    • B. 

      Making a decision based on how a person interacts with their environment

    • C. 

      Making a decision on how to colorfully assort your clothes in the morning

  • 13. 
    What is a Global Economy?
    • A. 

      Economy in which economic action taken anywhere in the world will affect your standard of living

    • B. 

      Global policy to create human rights

    • C. 

      Governmental plan to reduce trade barriers

  • 14. 
    • A. 

      True

    • B. 

      False

  • 15. 
    How is opportunity cost best defined when it comes to economics?
    • A. 

      Most highly valued opportunity

    • B. 

      Replacement

    • C. 

      Creating a new product

  • 16. 
    Which of the following is the best example of opportunity cost?
    • A. 

      Studying late for a test, your opportunity cost is a good night's sleep

    • B. 

      Studying for a test and getting the answers correct on the test

    • C. 

      Moving to Denver for a new job

  • 17. 
    Which of the following is a synonym for utility?
    • A. 

      Wants

    • B. 

      Satisfaction

    • C. 

      Creation

    • D. 

      Economics

  • 18. 
    • A. 

      Accounting service

    • B. 

      Trash collection

    • C. 

      IBM computers

    • D. 

      Hair Styling

  • 19. 
    When your satisfaction level decreases after every use, what is that termed?
    • A. 

      Tangible Good

    • B. 

      Diminishing Marginal Utility

    • C. 

      Economic Plan

    • D. 

      Intangible Good

  • 20. 
    Which one of the following is not an example of the factors of production?
    • A. 

      Land

    • B. 

      Labor

    • C. 

      Capital

    • D. 

      Economic Decisions

  • 21. 
    • A. 

      Command

    • B. 

      Market

    • C. 

      Free Enterprise

  • 22. 
    What are the three elements of the economic trilogy?
    • A. 

      Scarcity, Opportunity Cost, and Choice

    • B. 

      Choice, Wants, and Needs

    • C. 

      Socialism, Free Enterprise, and Mixed Economy

    • D. 

      Wants, Diminishing Marginal Utility, and Choice

  • 23. 
    Which of the following is an example of public property?
    • A. 

      Roadways such as I-70

    • B. 

      Businesses

    • C. 

      Homes

    • D. 

      Bowling Alleys

  • 24. 
    A positive incentive is best characterized as which of the following?
    • A. 

      Causes a person to act in a positive or intended manner

    • B. 

      Emotion related to doing something for a price

    • C. 

      Performing a service for pay

  • 25. 
    The Dating Game exemplified which two economic terms the most
    • A. 

      Opportunity Cost and Diminishing Marginal Utility

    • B. 

      Choice and Scarcity

    • C. 

      Choice and Mixed Economy

  • 26. 
    What are the three things that competition leads to?
    • A. 

      Lower Prices, Better Quality, and Efficiency

    • B. 

      Efficiency, Cost Production, and Service Oriented Practices

    • C. 

      Lower Prices, Economic Output, and separate markets

  • 27. 
    • A. 

      True

    • B. 

      False

  • 28. 
    What does the degree of competition affect the most?
    • A. 

      Decisions made by firms in that market

    • B. 

      Decisions made by consumers

    • C. 

      Decisions made by the government

  • 29. 
    In an oligopoly, how many firms are typically involved ni a particular market?
    • A. 

      Few

    • B. 

      Many

    • C. 

      One

  • 30. 
    • A. 

      Many

    • B. 

      Few

    • C. 

      One

  • 31. 
    What is the major goal of economics?
    • A. 

      To make businesses more money

    • B. 

      To make additional financial compensation for government

    • C. 

      To make people better-off through the use of choices

  • 32. 
    What is a normative opinion in business and economics?
    • A. 

      Opinion or preference

    • B. 

      Fact Based

    • C. 

      Creative insight

    • D. 

      Theoretical belief

  • 33. 
    What do most situations in life involve?
    • A. 

      Choices due to scarcity

    • B. 

      Scarcity

    • C. 

      Opportunity Cost

    • D. 

      Business

  • 34. 
    What is a preference?
    • A. 

      A person's first choice

    • B. 

      A person's most valued opportunity

    • C. 

      A service business first sale of the year

  • 35. 
    Which one of the following is an alternative?
    • A. 

      Choosing Chipotle instead of Qdoba

    • B. 

      Going to the Mall

    • C. 

      Riding the Bus

  • 36. 
    Which of the following is the best definition for alternative?
    • A. 

      The different options from which you can choose

    • B. 

      The different choices that are made

    • C. 

      The different opportunity costs that are associated with making a choice

  • 37. 
    How is a trade-off different than an alternative?
    • A. 

      Alternatives have other choices only

    • B. 

      Trade-offs require something to be given up to get something

    • C. 

      Alternatives are inevitable

  • 38. 
    All choices have consequences both positive and negative
    • A. 

      True

    • B. 

      False

  • 39. 
    How are sunk costs recovered by a business?
    • A. 

      Sunk costs are unrecoverable

    • B. 

      By asking for a refund

    • C. 

      Exercising financial constraint prior to purchase

    • D. 

      Expenditures made by the government

  • 40. 
    What is one key component of Adam Smith's economic theory?
    • A. 

      Private Property

    • B. 

      Intangible Goods

    • C. 

      Tangible Goods

    • D. 

      Choice and Opportunity Cost

  • 41. 
    A __________________ is a person who selects, purchases, uses, or disposes of goods or services.
  • 42. 
    Things we must have to survive are called________________
  • 43. 
    The amount of money left over after a business has paid for the cost of producing its goods and services.
  • 44. 
    The contest between businesses to win customers.
  • 45. 
    Things we wish we could have.
  • 46. 
    S.O.L is an abbreviation for what.
    • A. 

      Standard of Living

    • B. 

      Standard of Losing

    • C. 

      Standard of Limitations

    • D. 

      Standard of Limited Liabilities

  • 47. 
    What is the free market according to Adam Smith?
    • A. 

      Where people are free to choose and be involved in voluntary trade

    • B. 

      Where people are free to locate their own government within a country

    • C. 

      Where people are free to remain apart from society

  • 48. 
    When something is preferred to another product, it is a_______________
  • 49. 
    What is a public want?
    • A. 

      Widely shared by many people

    • B. 

      A want held by governmental employees only

    • C. 

      A want desired by a corporation

    • D. 

      A want shared by a particular industry, such as fishing.

  • 50. 
    Private wants are held by private individuals
    • A. 

      True

    • B. 

      False