Entrepreneur and Economic Growth Quiz Question and Answer

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Entrepreneur And Economic Growth Quiz Question And Answer - Quiz

What do you know about entrepreneurship and economic growth? Try this entrepreneur and economic growth quiz with questions and answers to test your updated knowledge. Here, we have got a list of questions on entrepreneurship and economic growth, where you can see how much you know and what new you need to learn. This quiz is helpful for those who wish to become an entrepreneur and have knowledge of economics. All the best for a perfect score on this quiz.


Questions and Answers
  • 1. 

    What does entrepreneurship mean?

    • A.

      The willingness and innovation needed to risk demolishing a business

    • B.

      The willingness and innovation needed for inflation

    • C.

      The willingness to earn money

    • D.

      The willingness and innovation needed to risk starting a business

    Correct Answer
    D. The willingness and innovation needed to risk starting a business
    Explanation
    Entrepreneurship refers to the willingness and innovation required to take the risk of starting a business. It involves the ability to identify opportunities, develop new ideas, and take calculated risks to create and grow a successful venture. This includes traits such as being proactive, resourceful, and adaptable, as well as having the drive and determination to overcome challenges and pursue business goals. Entrepreneurship is not solely about earning money, but rather about taking the initiative to create something new and valuable in the market.

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  • 2. 

    Unlimited liability for all debts and obligations is a ______ of Sole Proprietorship.

    • A.

      Advantage

    • B.

      Disadvantage

    • C.

      Profit

    • D.

      Necessity

    Correct Answer
    B. Disadvantage
    Explanation
    Unlimited liability for all debts and obligations is a disadvantage of Sole Proprietorship because it means that the owner is personally responsible for all the business's debts and obligations. This means that if the business fails or accumulates significant debt, the owner's personal assets may be at risk. Unlike other business structures, such as corporations or limited liability companies, the owner does not have the protection of limited liability, making it a disadvantage of sole proprietorship.

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  • 3. 

    Which of the following is NOT an economic indicator?

    • A.

      Equilibrium Price

    • B.

      Unemployment

    • C.

      GDP

    • D.

      Retail Sales

    Correct Answer
    A. Equilibrium Price
    Explanation
    Equilibrium price is not considered an economic indicator because it is a theoretical concept used in economics to determine the price at which the quantity demanded by consumers matches the quantity supplied by producers. It is not a measure of economic activity or performance like the other options listed (unemployment, GDP, and retail sales), which are commonly used indicators to assess the health and trends of an economy.

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  • 4. 

    What is the 'right' of a business in economic terms?

    • A.

      Engage in fair labor practices and fair competition.

    • B.

      Participate in markets for the purpose of exchanging goods and services.

    • C.

      Both

    • D.

      None

    Correct Answer
    B. Participate in markets for the purpose of exchanging goods and services.
    Explanation
    The 'right' of a business in economic terms refers to its ability to participate in markets for the purpose of exchanging goods and services. This means that businesses have the freedom to engage in commercial activities and interact with consumers and other businesses to buy and sell products and services. This right allows businesses to operate and contribute to the economy by creating value, generating income, and promoting competition. It also implies that businesses should adhere to ethical practices and regulations while conducting their operations.

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  • 5. 

    A corporation is a business owned by _________ and managed by ______ and __________.

    • A.

      Shareholders; Dictators; Executives

    • B.

      Dictators; Shareholders; Executives

    • C.

      Directors; Shareholders; Executives

    • D.

      Shareholders; Directors; Executives

    Correct Answer
    D. Shareholders; Directors; Executives
    Explanation
    A corporation is a business owned by shareholders and managed by directors and executives. Shareholders are individuals or entities that own shares of the corporation's stock and have a stake in the company's profits and decision-making. Directors are elected by the shareholders to oversee the company's operations and make strategic decisions. Executives are appointed by the directors and are responsible for the day-to-day management of the corporation.

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  • 6. 

    What is the 'responsibility' of a business?

    • A.

      Engage in fair labor practices and fair competition.

    • B.

      Participate in markets for the purpose of exchanging goods and services.

    • C.

      Both 

    • D.

      None

    Correct Answer
    A. Engage in fair labor practices and fair competition.
    Explanation
    The responsibility of a business is to engage in fair labor practices and fair competition. This means that businesses should treat their employees fairly, providing them with fair wages, safe working conditions, and equal opportunities. Additionally, businesses should also engage in fair competition, meaning they should not engage in unethical practices such as price-fixing or monopolistic behavior. By doing so, businesses contribute to a fair and competitive market environment, which benefits both consumers and other businesses.

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  • 7. 

    What does inflation in the economy mean?

    • A.

      To fill with air or gas

    • B.

      To release gas from an object

    • C.

      A general increase in the price of goods and services

    • D.

      To release the cost of production

    Correct Answer
    C. A general increase in the price of goods and services
    Explanation
    Inflation in the economy refers to a general increase in the price of goods and services. This means that over time, the overall cost of purchasing goods and services increases, resulting in a decrease in the purchasing power of money. Inflation can occur due to various factors such as increased demand, rising production costs, or changes in government policies. It is an important economic indicator as it affects consumers' purchasing power, interest rates, and overall economic stability.

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  • 8. 

    What is the measure of the efficiency of the production of goods and services called?

    • A.

      Unemployment

    • B.

      Productivity

    • C.

      Specialization

    • D.

      GDP

    Correct Answer
    B. Productivity
    Explanation
    Productivity is the measure of the efficiency of the production of goods and services. It indicates how efficiently resources are being utilized to produce output. A high level of productivity means that more goods and services are being produced with the same amount of resources, leading to economic growth and higher standards of living. Unemployment refers to the number of people who are without a job but are actively seeking work. Specialization refers to the concentration of individuals or businesses on specific tasks or areas of expertise. GDP (Gross Domestic Product) is the total value of all goods and services produced within a country in a given period.

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  • 9. 

    Which of the following determines the rate of unemployment?

    • A.

      The number of people over 16 who do not have a job but are actively seeking employment.

    • B.

      The number of people over 18 who do not have a job but are not actively seeking employment.

    • C.

      The number of people over 15 who do not have a job but are not actively seeking employment.

    • D.

      The number of people over 10 who do not have a job but are not actively seeking employment.

    Correct Answer
    B. The number of people over 18 who do not have a job but are not actively seeking employment.
    Explanation
    The rate of unemployment is determined by the number of people over 18 who do not have a job but are not actively seeking employment. This is because the rate of unemployment typically measures the percentage of the labor force that is without a job but actively seeking employment. By considering only those over 18 who are not actively seeking employment, it provides a more accurate representation of those who are truly unemployed and available for work.

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  • 10. 

    Which of the following is NOT the cost of the purchase, use, and disposal of personal and business property?

    • A.

      Potential profit at sale

    • B.

      Associated cost with the upkeep of the property

    • C.

      Possible loss of value of property and loss at the time of sale

    • D.

      Opportunity cost of what was not purchased

    Correct Answer
    A. Potential profit at sale
    Explanation
    The potential profit at sale is not considered a cost of the purchase, use, and disposal of personal and business property. Costs typically refer to expenses or losses incurred in relation to the property, such as the associated cost with the upkeep of the property, possible loss of value of property and loss at the time of sale, and the opportunity cost of what was not purchased. Potential profit, on the other hand, is a potential gain that can be achieved from selling the property, rather than a cost.

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