Introduction To Business-quiz 1

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Questions: 34 | Attempts: 655

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Business Quizzes & Trivia

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Questions and Answers
  • 1. 

    1. Which of the following is necessary to identify market needs that can and should be met?

    • A.

      Market research

    • B.

      Market trends

    • C.

      Customer focus

    • D.

      Buyers and sellers

    Correct Answer
    A. Market research
    Explanation
    Market research is necessary to identify market needs that can and should be met because it involves gathering and analyzing data about customers, competitors, and market trends. This research helps businesses understand their target market, identify customer preferences and demands, and make informed decisions about product development, pricing, and marketing strategies. By conducting market research, businesses can gain insights into the needs, wants, and behaviors of their target audience, allowing them to tailor their offerings to meet those needs effectively and gain a competitive advantage in the market.

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  • 2. 

    Stakeholder theorists believe that______.

    • A.

      People outside of the business enterprise (e.g., consumers) ought to have a say in how the business operates

    • B.

      A business is essentially someone's property, and, as such, that its owners have the right to dispose of it as they see fit

    • C.

      The enterprise being run by employees and managers as a kind of representative democracy

    • D.

      Business can be viewed to exist for the purpose of creative expansion

    Correct Answer
    A. People outside of the business enterprise (e.g., consumers) ought to have a say in how the business operates
    Explanation
    Stakeholder theorists believe that people outside of the business enterprise, such as consumers, should have a say in how the business operates. This means that the interests and opinions of all stakeholders, not just the owners, should be taken into consideration when making decisions. This approach emphasizes the importance of considering the impact of business decisions on all parties involved and promoting a more inclusive and equitable business environment.

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  • 3. 

    Things that are required in order to live are known as wants

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The statement is incorrect. Things that are required in order to live are known as needs, not wants. Wants are desires or preferences that are not essential for survival.

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  • 4. 

    Goods and services are purchased by businesses as well as by individuals.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Businesses and individuals both purchase goods and services. This is because businesses require various goods and services to operate and meet their needs, such as raw materials, equipment, and professional services. On the other hand, individuals purchase goods and services for personal consumption, such as food, clothing, and entertainment. Therefore, it is true that both businesses and individuals engage in purchasing goods and services.

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  • 5. 

    Buildings, equipment, and supplies are examples of natural resources. 

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Buildings, equipment, and supplies are not examples of natural resources. Natural resources are materials or substances that occur in nature and can be used for economic gain, such as minerals, forests, water, and air. Buildings, equipment, and supplies are man-made or manufactured items that are created using natural resources. Therefore, the correct answer is false.

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  • 6. 

    All economic resources have a limited supply.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    This statement is true because all economic resources, such as land, labor, and capital, are finite in nature. There is a limited amount of these resources available in the world, and they cannot be produced infinitely. This scarcity of resources is what gives them economic value and drives the concept of supply and demand in economics. Therefore, it is correct to say that all economic resources have a limited supply.

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  • 7. 

    The basic economic problem results from not having enough resources to satisfy every need.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The basic economic problem arises because resources are limited, while human wants and needs are unlimited. This means that there will always be a scarcity of resources, leading to a situation where not every need or want can be fulfilled. As a result, individuals, businesses, and governments must make choices about how to allocate these limited resources in the most efficient and effective way possible. Therefore, the statement that the basic economic problem results from not having enough resources to satisfy every need is true.

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  • 8. 

    Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    This statement is false because although all nations have economic needs, the type and amount of economic resources they have can vary greatly. Different nations have different levels of natural resources, labor force, capital, and technology, which can impact their economic needs and capabilities. Therefore, it is incorrect to say that all nations have the same economic needs.

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  • 9. 

    Communism refers to the private ownership of resources by individuals, rather than by the government

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The statement is false because communism actually refers to a socio-economic system where the resources are owned and controlled collectively by the community or the government, rather than by individuals. In a communist society, there is no private ownership of resources, and the means of production are commonly owned. This is in contrast to capitalism, where resources are privately owned by individuals or corporations.

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  • 10. 

    A person who buys and uses goods and services is called a consumer

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement "A person who buys and uses goods and services is called a consumer" is true. A consumer is an individual who purchases and utilizes goods and services for personal use or consumption. This term is commonly used in the field of economics to refer to the end-users of products and services in the market. Consumers play a vital role in driving the demand for goods and services, which in turn affects the production and distribution processes.

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  • 11. 

    Generally, a lack of competition will result in lower prices for goods and services

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The statement is false because a lack of competition usually leads to higher prices for goods and services. When there is no competition, businesses have the power to set prices without any pressure to keep them low. This can result in monopolies or oligopolies where companies can charge higher prices and consumers have limited options. On the other hand, in a competitive market, businesses have to offer competitive prices to attract customers, leading to lower prices overall.

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  • 12. 

    Which of the following is an economic need?

    • A.

      a new television

    • B.

      Water

    • C.

      Concert tickets

    • D.

      Air conditioner

    Correct Answer
    B. Water
    Explanation
    Water is considered an economic need because it is essential for survival and basic human needs. It is a fundamental resource required for drinking, cooking, hygiene, and agriculture. Without access to clean and safe water, individuals and communities would face significant challenges in meeting their basic needs and maintaining their overall well-being. Therefore, water is a necessity that is directly linked to economic development and the overall functioning of societies.

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  • 13. 

    Goods.............................................................

    • A.

      Are things you purchase only after your basic needs are met.

    • B.

      Have no physical characteristics.

    • C.

      Must be provided to you at the time you want to consume them.

    • D.

      Are things you can see and touch

    Correct Answer
    D. Are things you can see and touch
    Explanation
    Goods are tangible items that can be perceived through the senses of sight and touch. They are physical objects that can be bought and possessed once the basic needs are fulfilled. This distinguishes them from services, which are intangible and cannot be seen or touched. Therefore, the statement "are things you can see and touch" accurately describes goods.

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  • 14. 

    The largest producer of goods and services in the world is...........................................

    • A.

      Japan

    • B.

      Russia.

    • C.

      The United States

    • D.

      China

    Correct Answer
    C. The United States
    Explanation
    The United States is the largest producer of goods and services in the world due to its strong and diverse economy. It has a highly developed industrial sector, advanced technology, and a large skilled workforce. The country has a wide range of industries including manufacturing, finance, technology, agriculture, and services, which contribute significantly to its GDP. Additionally, the United States has a large domestic market and is a major player in international trade, further boosting its production capabilities.

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  • 15. 

    People producing goods and services are called..................................

    • A.

      Human resources.

    • B.

      Natural resources

    • C.

      Capital resources

    • D.

      Limited resources.

    Correct Answer
    A. Human resources.
    Explanation
    The correct answer is human resources. This is because people who produce goods and services are considered as human resources. They contribute their skills, knowledge, and labor to the production process, making them an essential factor of production. Natural resources refer to materials or substances found in nature, capital resources are man-made tools and equipment used in production, and limited resources is a general term that can refer to any type of resource that is scarce or in limited supply.

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  • 16. 

    If everybody had an unlimited supply of economic resources, which of the following would not exist?

    • A.

      Wants

    • B.

      Capitalism

    • C.

      Scarcity

    • D.

      Needs

    Correct Answer
    C. Scarcity
    Explanation
    If everybody had an unlimited supply of economic resources, scarcity would not exist. Scarcity refers to the limited availability of resources in relation to unlimited wants and needs. In a scenario where everyone has an unlimited supply of resources, there would be no scarcity as there would be no shortage or insufficiency of resources to fulfill wants and needs.

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  • 17. 

    In every nation on Earth,..........................................................

    • A.

      Economic resources are owned and controlled by the government.

    • B.

      Workers have the ability to produce the same goods and services.

    • C.

      Individuals have the same wants and needs.

    • D.

      People must deal with the problem of scarcity. (correct answer)

    Correct Answer
    D. People must deal with the problem of scarcity. (correct answer)
    Explanation
    The given statement suggests that in every nation on Earth, people must deal with the problem of scarcity. This means that there are limited resources available to fulfill the unlimited wants and needs of individuals. Scarcity is a fundamental economic problem that requires individuals to make choices and allocate resources efficiently. It is a universal concept that applies to all nations and societies, regardless of the ownership of economic resources or the abilities of workers.

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  • 18. 

    The government of ABC, owns and controls all economic resources and decides how those resources will be used. The government even assigns people specific jobs and careers. ABC uses which type of economic system?

    • A.

      Market economy

    • B.

      Command economy

    • C.

      Traditional economy

    • D.

      Mix market

    Correct Answer
    B. Command economy
    Explanation
    The given answer, command economy, is correct because it describes a system where the government has complete control over economic resources and determines how they will be utilized. In this type of economic system, the government also assigns individuals specific jobs and careers, further illustrating its centralized control over the economy. This is in contrast to a market economy, where resources are allocated based on supply and demand, and a traditional economy, where economic decisions are based on customs and traditions. A mixed market economy combines elements of both command and market economies, but in this case, the government's ownership and control of resources indicate a command economy.

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  • 19. 

    Who owns the economic resources in a market economy?

    • A.

      The people of the country

    • B.

      The tribal elders

    • C.

      The government

    • D.

      Business people and entrepreneurs but not consumers

    Correct Answer
    A. The people of the country
    Explanation
    In a market economy, the economic resources are owned by the people of the country. This means that individuals have the right to own and control their own property, including land, capital, and other resources. The government does not have direct ownership of these resources, and business people and entrepreneurs also have ownership rights. However, it is important to note that consumers, who are also part of the people of the country, indirectly own economic resources through their purchasing power and demand for goods and services.

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  • 20. 

    Which type of economy is usually centered mainly on meeting people’s basic needs?

    • A.

      Market economy

    • B.

      Command economy

    • C.

      Mixed economy

    • D.

      Traditional economy

    Correct Answer
    D. Traditional economy
    Explanation
    A traditional economy is usually centered mainly on meeting people's basic needs. In this type of economy, economic activities are based on customs, traditions, and beliefs that have been passed down through generations. The focus is on producing enough food, clothing, and shelter to sustain the community, rather than on profit or economic growth. Traditional economies are typically found in rural or indigenous communities where subsistence farming and bartering are common practices.

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  • 21. 

     The rivalry among businesses to sell their goods and services is known as.........................

    • A.

      Competition

    • B.

      Entrepreneurship

    • C.

      Capitalism

    • D.

      Cornering the market

    Correct Answer
    A. Competition
    Explanation
    Competition refers to the rivalry among businesses to sell their goods and services. It is a fundamental aspect of the business world, where companies strive to outperform their competitors and attract customers. This can lead to innovation, improved products or services, and better pricing options for consumers. Competition is essential for a healthy market economy, as it encourages efficiency, productivity, and growth.

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  • 22. 

    Ethics are ______ principles by which people conduct themselves personally, socially, or professionally.

    • A.

      Business

    • B.

      Cultural

    • C.

      Legal

    • D.

      Moral

    Correct Answer
    D. Moral
    Explanation
    Ethics are moral principles by which people conduct themselves personally, socially, or professionally. Moral principles refer to the standards of right and wrong that individuals adhere to in their actions and decisions. These principles are based on personal values, beliefs, and a sense of what is considered morally acceptable or unacceptable in society. Ethics guide individuals in making ethical judgments and behaving in an ethical manner, ensuring that their actions align with their moral values and contribute to the well-being of themselves and others.

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  • 23. 

    Unethical behavior sometimes leads to the passage of legislation that makes the behaviors ______

    • A.

      Acceptable

    • B.

      Illegal

    • C.

      Reprehensible

    • D.

      Unconstututioanl

    Correct Answer
    B. Illegal
    Explanation
    Unethical behavior sometimes leads to the passage of legislation that makes the behaviors illegal. This is because when unethical actions are observed and deemed harmful or detrimental to society, lawmakers may intervene by creating laws that explicitly prohibit and punish such behavior. By making these behaviors illegal, the intention is to deter individuals from engaging in unethical conduct and maintain a sense of fairness, justice, and order within the community.

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  • 24. 

    A conflict of interest is a conflict between self-interest and ______ obligation.

    • A.

      Legal

    • B.

      Financial

    • C.

      Professional

    • D.

      Societal

    Correct Answer
    C. Professional
    Explanation
    A conflict of interest is a conflict between self-interest and professional obligation. This means that when an individual's personal interests clash with their professional duties or responsibilities, it creates a situation where they may be influenced to prioritize their own interests over their professional obligations. This conflict can arise in various fields and professions, where individuals must make decisions that are in the best interest of their clients, organizations, or the public, rather than solely focusing on their own gain.

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  • 25. 

     An example of a workplace issue that would likely be handled by OSHA is ______ .

    • A.

      Consumer rights

    • B.

      Pollution control

    • C.

      Safety equipment

    • D.

      Wage discrimination

    Correct Answer
    C. Safety equipment
    Explanation
    OSHA, which stands for the Occupational Safety and Health Administration, is responsible for ensuring safe and healthy working conditions for employees. One of their main focuses is on safety equipment, such as protective gear and machinery safeguards, to prevent accidents and injuries in the workplace. OSHA sets and enforces safety standards, conducts inspections, and provides training and education to employers and employees. Therefore, a workplace issue related to safety equipment would likely fall under OSHA's jurisdiction.

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  • 26. 

    Things that add comfort and pleasure to your life are ................................ 

    Correct Answer
    wants
    Explanation
    The word "wants" refers to the desires or preferences that individuals have in order to enhance their comfort and pleasure in life. These can include material possessions, experiences, or any other things that bring joy and satisfaction. Fulfilling one's wants can contribute to a more enjoyable and fulfilling life.

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  • 27. 

    Intangible things that you purchase are referred to as ..................................

    Correct Answer
    services
    Explanation
    When you purchase intangible things, such as experiences, advice, or assistance, they are referred to as services. Services are non-physical products that are provided by individuals or businesses to fulfill the needs or desires of customers. Unlike tangible goods, services cannot be touched or held, but they still provide value and can be bought and sold. Examples of services include haircuts, legal advice, and transportation.

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  • 28. 

    A(n)................................... is the risk taker who uses resources in a new way to create a new product or service.  

    Correct Answer
    entrepreneur
    Explanation
    An entrepreneur is someone who takes risks and utilizes resources in innovative ways to develop and introduce a new product or service into the market. They are known for their ability to identify opportunities, take calculated risks, and bring about positive change through their creative ideas and business ventures. Entrepreneurs play a crucial role in driving economic growth and innovation by introducing new products, services, and business models that meet the evolving needs and demands of consumers.

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  • 29. 

    Personal economic freedom is most limited in a/(n).......................... economic system.

    Correct Answer
    command
    Explanation
    Personal economic freedom is most limited in a command economic system. In this type of system, the government has complete control over the allocation of resources and production decisions. Individuals have little to no say in economic activities, and the government determines what goods and services are produced, how they are produced, and who receives them. This lack of individual choice and control restricts personal economic freedom.

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  • 30. 

    A(n) ..............................................................  economy combines elements of the command and market economies.  

    Correct Answer
    mixed economy
    Explanation
    A mixed economy combines elements of both a command economy and a market economy. In a mixed economy, the government and private individuals or businesses both play a role in making economic decisions. The government may regulate certain industries or provide public goods and services, while individuals and businesses have the freedom to make their own choices in the market. This combination allows for a balance between central planning and individual freedom, and is often seen in countries like the United States and Canada.

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  • 31. 

    ......................................................are individuals and organizations that determine what products and services will be available for sale 

    Correct Answer
    producers
    Explanation
    Producers are individuals and organizations that determine what products and services will be available for sale. They play a crucial role in the supply chain by creating and manufacturing goods or providing services that meet the demands and needs of consumers. Producers are responsible for making decisions regarding the design, production, pricing, and distribution of their offerings. Their choices ultimately shape the availability and variety of products and services in the market, influencing consumer choices and market dynamics.

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  • 32. 

    .................................is the quantity of a good or service that consumers are willing and able to buy.  

    Correct Answer
    demand
    Explanation
    Demand refers to the quantity of a good or service that consumers are willing and able to buy. It represents the desire and purchasing power of consumers in the market. When the demand for a product increases, it indicates that consumers are willing to buy more of it at a given price. Factors such as price, income, tastes and preferences, and availability of substitutes influence the level of demand for a product. Understanding demand is crucial for businesses to determine the optimal quantity to produce and set prices accordingly.

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  • 33. 

    .............................................are businesses offering very similar products to the same customers. 

    Correct Answer
    competitors
    Explanation
    Competitors are businesses offering very similar products to the same customers. This means that they are in direct competition with each other, as they are targeting the same market and trying to attract the same customers. They may have similar pricing, features, and marketing strategies in order to differentiate themselves and gain an advantage over their rivals. Competitors play a crucial role in the business environment, as they drive innovation, improve product quality, and provide consumers with more choices.

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  • 34. 

    Name any two factors of production: (2 marks)

    Correct Answer
    natural resources, human resources, and capital resources.
    Explanation
    The answer provided is correct because it lists two factors of production: natural resources, such as land and minerals, and human resources, which refers to the labor and skills of individuals. Additionally, the answer includes capital resources, which are man-made goods used in the production process, such as machinery and equipment. These three factors are essential in the production of goods and services in an economy.

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