Ent Ch 2 Post-test

25 Questions | Total Attempts: 153

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Market Quizzes & Trivia

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Questions and Answers
  • 1. 
    Which of the following is a problem a nation might attempt to solve through its economic system?
    • A. 

      Limited supply of good and services

    • B. 

      Democracy

    • C. 

      Entrepreneur's profit motive

    • D. 

      All of the above

  • 2. 
    A Profit is beneficial to entrepreneurs because...
    • A. 

      Profit builds wealth and financial independence

    • B. 

      Profit is the equilibrium quantity on a supply and demand curve

    • C. 

      Profit is a barrier to international trade

    • D. 

      Profit is the answer to one of the fundamental questions of economics

  • 3. 
    A market economy is also called...
    • A. 

      Socialism

    • B. 

      Capitalism

    • C. 

      Free enterprise system

    • D. 

      "B" and "C"

  • 4. 
    The profit motive is...
    • A. 

      The money left over after expenses are subtracted from sales

    • B. 

      The economics of one unit

    • C. 

      A reason entrepreneurs take a business risks

    • D. 

      Profit calculated as a percentage of expenses

  • 5. 
    Which of the following statements about competition is FALSE?
    • A. 

      Competition motivates entrepreneurs to introduce new products to consumers

    • B. 

      Competition between suppliers drives prices upward

    • C. 

      Competition between consumer benefits suppliers

    • D. 

      Competition occurs between suppliers and between consumers

  • 6. 
    Importing and exporting are activities primarily associated with...
    • A. 

      Nonprofit organizations

    • B. 

      The profit motive

    • C. 

      The economics of one unit

    • D. 

      The global economy

  • 7. 
    The economics of one unit is a calculation of...
    • A. 

      The equilibrium quantity on a supply curve

    • B. 

      How many items an entrepreneur has for sale

    • C. 

      The profit or loss associated with a unit of sale

    • D. 

      Foreign demand for an entrepreneur's product

  • 8. 
    The United States economy is best described as...
    • A. 

      A pure market economy in which the government plays no role in the economy

    • B. 

      A pure command economy in which the government controls the economy

    • C. 

      A mixed economy in which suppliers and consumers play the primary role

    • D. 

      A socialist economy in which suppliers and consumers play the primary role

  • 9. 
    Which of following challenges poses a business risk to entrepreneurs who want to conduct international trade?
    • A. 

      Tariffs that must be paid to import goods

    • B. 

      Cultural differences between nations

    • C. 

      Trade barriers

    • D. 

      All of the above

  • 10. 
    A local economy is best described as...
    • A. 

      The flow of goods and services within a community

    • B. 

      The flow of goods and services in international trade

    • C. 

      An economic system based on foreign exchange rates

    • D. 

      An economic system dominated by nonprofit organizations

  • 11. 
    The "command system" is the best economic system for entrepreneurs.
    • A. 

      True

    • B. 

      False

  • 12. 
    People play the central role in an economy.
    • A. 

      True

    • B. 

      False

  • 13. 
    Suppliers often charge higher prices when demand is low.
    • A. 

      True

    • B. 

      False

  • 14. 
    The profit motive encourages entrepreneurs to start businesses.
    • A. 

      True

    • B. 

      False

  • 15. 
    "Importing and exporting" are business activities.
    • A. 

      True

    • B. 

      False

  • 16. 
    The Internet makes it easier to participate in international trade.
    • A. 

      True

    • B. 

      False

  • 17. 
    Cultural customs are the same in every country around the world.
    • A. 

      True

    • B. 

      False

  • 18. 
     Trade barriers make it easier for entrepreneurs to import and export.
    • A. 

      True

    • B. 

      False

  • 19. 
    The "supply and demand curve" is a tool used by entrepreneurs.
    • A. 

      True

    • B. 

      False

  • 20. 
    Consumers buy more of a product when its price is low.
    • A. 

      True

    • B. 

      False

  • 21. 
    Sustainable economic development is bad for the global economy.
    • A. 

      True

    • B. 

      False

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