Entrepreneur and Economic Growth Quiz Question and Answer

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.