Introduction To Business Quiz #1

10 Questions | Total Attempts: 578

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Introduction To Business Quizzes & Trivia

Questions and Answers
  • 1. 
    Economics is the study of:
    • A. 

      How individuals and businesses satisfy wants and desires

    • B. 

      How resources are allocated

    • C. 

      Supply and demand

    • D. 

      All of the above

  • 2. 
    Denmark and the Netherlands have high marginal income tax rates. The income derived from such taxes goes to pay for health care and other social services for all citizens of each country. This arrangement is an illustration of what kind of economic system?
    • A. 

      Communism

    • B. 

      Socialism

    • C. 

      Traditionalism

    • D. 

      Market economy

  • 3. 
    Supply refers to __________________, while demand refers to _________________.
    • A. 

      How much people want to buy at any given time; how much of a product or service is available

    • B. 

      How much of a product or service is available; how much people want to buy at any given time

    • C. 

      Price expectations; number of suppliers

    • D. 

      Changes in income levels; consumer preferences

  • 4. 
    A form in which only a few sellers exist is:
    • A. 

      Monopoly

    • B. 

      Oligopoly

    • C. 

      Perfect competition

    • D. 

      Monopolistic competition

  • 5. 
    Inflation is monitored by watching changes in the:
    • A. 

      GDP

    • B. 

      GNP

    • C. 

      CPI

    • D. 

      PPI

  • 6. 
    Which of the following is NOT a stage in the business cycle?
    • A. 

      Repression

    • B. 

      Expansion

    • C. 

      Trough

    • D. 

      Peak

  • 7. 
    This economic indicator measures the overall market value of final goods and services produced in a country in a year.
    • A. 

      PPI

    • B. 

      GDP

    • C. 

      CPI

    • D. 

      IPP

  • 8. 
    The government's fiscal policy determines the appropriate level of taxes and government spending. An increase in taxes translates into:
    • A. 

      A booming economy

    • B. 

      Higher consumer spending

    • C. 

      Lower consumer spending

    • D. 

      Unemployment rate

  • 9. 
    With regards to the Federal Reserve Bank, what are "reserve requirements?"
    • A. 

      The minimum amount of money banks must hold in reserve to cover deposits

    • B. 

      The interest that the banks charge other banks

    • C. 

      Unexpected needs for funds

    • D. 

      Securities that the Fed buys

  • 10. 
    There are many factors (determinants) that affect supply and demand. One factor that affects supply is Technological Changes. Which of the following would be an example of a Technological Change that would affect supply?
    • A. 

      An increase in the cost of flour that would raise the price of fresh baked goods

    • B. 

      New bakery businesses opening within a few miles of each other

    • C. 

      A baker who purchases a new turbocharged oven who is then able to bake more fresh bread and rolls in less time

    • D. 

      The substitution of margarine for butter because the baker can get margarine for a lower price

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