Quiz : Introduction To Business

An entrepreneur is a person who takes the risk of investing both time and money to start and manage a business. They are typically driven by innovation, creativity, and a strong desire to succeed. Unlike a supervisor who oversees the work of others or an overachiever who sets high goals for themselves, an entrepreneur specifically takes on the financial and time-related risks associated with starting and running a business. A narcissist, on the other hand, is someone who has an excessive interest in themselves and their own achievements, which is not necessarily related to starting a business.

The GDP is an index of total market values of goods and services produced by workers and capital within a nation's borders during a given period.

Free trade refers to the movement of goods and services between countries without any restrictions or barriers such as tariffs, quotas, or trade agreements. It promotes economic growth, encourages competition, and allows countries to specialize in producing goods and services that they have a comparative advantage in. Free trade also fosters international cooperation and helps to create a global market where countries can benefit from each other's resources and expertise.

Stakeholders in business refer to all the individuals or groups who can be affected by the policies and activities of a business. This includes not only customers who purchase goods or services, but also vendors who sell to the business, employees who are impacted by the policies, and other individuals or groups who have a vested interest in the success or failure of the business. The term "stakeholders" encompasses a wide range of people who have a stake in the outcomes of the business's actions.

The correct answer is "business". This is because the activity of providing goods or services to others while operating at a profit is the fundamental definition of a business. Consumer advocating refers to promoting and protecting the rights of consumers, while barter systems involve the exchange of goods or services without the use of money. Therefore, neither of these options accurately describes the given activity.

The statement is true because the standard of living refers to the level of wealth, comfort, material goods, and necessities available to individuals or a society. It is directly related to the purchasing power and the ability to afford goods and services with the money one has. Thus, the higher the standard of living, the more goods and services a person can buy.

China leads the world in manufacturing outputs as of 2018. This is due to several factors such as its large population, extensive infrastructure, and low labor costs. China has become a global manufacturing hub, attracting multinational corporations to set up factories and production facilities in the country. It has a diverse manufacturing sector that encompasses various industries including electronics, automotive, textiles, and machinery. China's manufacturing prowess has allowed it to become a major exporter, contributing significantly to its economic growth and development.

Some factors that causes inflation: the cost of production, high wages, high cost of machinery and raw materials, increased government charges(e.g. electricity etc.) Main cause: Increasing costs of production • higher wages • higher costs of machinery & raw materials • Increased government charges (e.g. electricity etc.) • d. Food Bottleneck. Due to slow growth of agriculture, over- Higher costs are passed on to the consumer via higher • pressure of growing population on land, primitive prices. methods of cultivation, defective land tenure system, lack of adequate irrigation facilities and many other reasons, An increase in the costs of production leads to a decrease in • agriculture output, especially food supply which constitutes profit margin, causing a decrease in supply a large part of wage-goods, has failed to keep pace with the growing demand for it from the growing population and. increased’ rural employment in the rural industrialization process in these countries. This food bottleneck has created the problem of price rise in food grains, and it has become the cornerstone in the whole of price-structure in the developing economies.

Profit is the correct answer because it refers to the amount of money a business earns after deducting all expenses, including salaries and other costs. It represents the financial gain or surplus that a business generates from its operations. Profit is an important indicator of a company's financial performance and sustainability, as it demonstrates the ability to generate revenue in excess of expenses.

Demand refers to the quantity of products that individuals are willing and able to purchase at various prices at a given time. It represents the relationship between price and quantity demanded, indicating how much of a product consumers are willing to buy at different price points. Demand is influenced by factors such as price, income, consumer preferences, and market conditions. Understanding demand is crucial for businesses to determine pricing strategies and forecast consumer behavior.

Oligopoly refers to a form of competition where a small number of sellers dominate the market. In an oligopoly, a few large firms have significant control over the market, which can lead to limited competition and potential collusion between the dominant players. This market structure often results in barriers to entry for new competitors and can lead to higher prices and reduced consumer choice.

Macroeconomics is the branch of economics that focuses on the study of the overall functioning and behavior of an entire national economy. It examines factors such as national income, unemployment rates, inflation, and economic growth. This branch analyzes the aggregate behavior of households, businesses, and government entities to understand how they interact and influence the overall economy. By studying macroeconomics, policymakers and economists can gain insights into the factors that impact economic performance and make informed decisions to promote stability and growth.

Economics is the study of how society makes decisions on the allocation of limited resources to produce goods and services, and how these are distributed among different groups and individuals. It examines the principles of supply and demand, market behavior, production, consumption, and the overall functioning of economies. Economics plays a crucial role in understanding and analyzing various economic systems, policies, and issues, and helps in making informed decisions regarding resource allocation and distribution for the betterment of society.

The features of owning land, keeping the majority of profits, freedom of competition, and freedom of choice align with the principles of capitalism. In a capitalist economic system, individuals and businesses have the right to private ownership of property, they can retain the profits they earn, competition is encouraged, and individuals have the freedom to make choices regarding their economic activities.

NAFTA refers to the North American Free Trade Agreement. This agreement is a trilateral trade bloc between the United States, Canada, and Mexico, established in 1994. It aims to eliminate trade barriers and promote economic cooperation between the member countries. Under NAFTA, tariffs on various goods and services are reduced or eliminated, facilitating trade and investment among the participating nations. The agreement has had a significant impact on the economies of the member countries, leading to increased trade and cross-border investments.

The business cycle consists of different phases that the economy goes through. An economic boom refers to a period of rapid economic growth, characterized by increased production, high employment rates, and rising prices. A recession is a downturn in economic activity, marked by a decline in production, high unemployment rates, and falling prices. A depression is an extreme and prolonged recession, characterized by severe economic decline, widespread unemployment, and low business activity. Recovery is the phase when the economy starts to improve after a recession or depression. Therefore, all of the given options - economic boom and recession, depression, and recovery - are phases of the business cycle.

Market price refers to the price at which a product or service is bought and sold in the open market. It is determined by the interaction of supply and demand forces. When demand for a product or service is high and supply is limited, the market price tends to increase. Conversely, when demand is low and supply is abundant, the market price tends to decrease. Therefore, market price is the most accurate reflection of the prevailing economic conditions and the equilibrium point between buyers and sellers.

Some companies focus on quality in order to gain a competitive edge on the competition. By providing high-quality products or services, they are able to differentiate themselves from their competitors and attract customers who value excellence. Quality can enhance customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth recommendations. Additionally, a focus on quality can also help companies build a strong reputation and brand image, further strengthening their competitive position in the market.

Adam Smith is considered to be the Father of Economics because of his seminal work "The Wealth of Nations" published in 1776. In this book, Smith laid the foundation for modern economics by introducing the concept of the invisible hand, which explains how self-interest and competition in a free market can lead to the best outcome for society as a whole. Smith's ideas on free trade, division of labor, and the role of government in the economy have had a profound influence on the field of economics and continue to be studied and debated by economists worldwide.

Productivity refers to the measure of efficiency in generating output based on the input provided. It quantifies the relationship between the amount of output produced and the amount of input utilized. In other words, it assesses how effectively resources are utilized to produce goods or services. The correct answer states that productivity is "the amount of output you generate given the amount of input," which accurately captures the essence of productivity.

Monopolistic competition refers to a market situation where there are many sellers producing similar products, but each seller tries to differentiate their product through branding, marketing, or product features in order to attract buyers. This type of competition allows for some degree of market power for each seller, as they have the ability to set prices to some extent. However, there are still many sellers in the market, preventing any single seller from having complete control over the market. Therefore, the correct answer is "Monopolistic."

Revenue refers to the total sales generated by a business during a specified period. It represents the income received from customers in exchange for goods or services provided. The other options mentioned, such as the difference between debit and credit sides of an account and the money received by a business from customers, are not accurate definitions of revenue. Therefore, the correct answer is total sales during a stated period.