Why are certain decisions that businesses make called risks?

It is possible that the business will lose money.

Al wants to open a lemonade stand.What must occur in order for their business to make a profit?

The amount of money he earned must be greater than supplies

Why do banks have the ability to lend people money?

The banks charge interest to the people who borrow money.

Which of the following is an example of a business taking a risk?

opening a new store in a new city

Which of the following would cause the greatest shortage of a good or service?

A hurricane destroys cotton crops

What is an example of a capital resource?

a hammer that is used to build houses

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Economy

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Questions 20

Answers

1
Which is an example of a good?
a baker
a new car
a doctor
a dog walker
2
Which sentence best describes how a low supply of apples would affect their cost?
It would make the cost go down.
It would make the cost go up.
It would make the cost stay the same.
It would make the cost go up and down.
3
Why are certain decisions that businesses make called risks?
The business will definitely earn money.
It does not matter if the business earns or loses money.
The business will definitely lose money.
It is possible that the business will lose money.
4
Jacob is building a house from trees. What kind of resources are the trees?
natural resources
forest resources
human resources
capital resources
5
Al wants to open a lemonade stand.What must occur in order for their business to make a profit?
The amount of money earned must be less than supplies
The amount of money earned must be equal to supplies
Al must sell all of the lemonade that he made
The amount of money he earned must be greater than supplies
6
Which of these completes the chart?
Stores
Toys
Schools
Restaurants
7
"The corn is sent to a factory and canned" is an example of
consumption.
distribution.
communication.
production.
8
Why do banks have the ability to lend people money?
The banks want people to have everything that they need.
The banks have an unlimited supply of money.
The banks are very generous.
The banks charge interest to the people who borrow money.
9
Which of the following is the definition of consumption?
increasing economic production through several processes
the utilizing of goods
taking economic materials and producing a different product
destroying materials in order to produce other products
10
Which is an example of a consumer?
Darnell gives his mom a present.
Patrick makes a model airplane.
Eva sells videogames.
Carlos buys groceries.
11
Andrew sells oil. He only has enough oil for 10 customers. This is an example of
producers.
consumers.
services.
scarcity.
12
Which of these most affects the way prices go up and down?
credit cards and trust
supply and demand
budget planning
television commercials
13
Which of the following is an example of a business taking a risk?
emailing a newsletter to customers
rearranging the furniture in the office
adding information to the company Web site
opening a new store in a new city
14
Which person is an example of a consumer?
Nadia makes a present.
Jack makes medicines.
Florence sells groceries.
Isaiah plays a game.
15
Which of the following activities would be considered consuming something?
a miner digging up gold
a student drinking milk
a farmer harvesting wheat
a child selling lemonade on the sidewalk
16
Jenny builds a birdhouse. After seeing it, her friends ask for one. What is this an example of?
management
consumption
production
distribution
17
Which of the following would cause the greatest shortage of a good or service?
A mud slide damages a section of a farm road
A wind storm tears the roof off a government office building
A hurricane destroys cotton crops
A lightning bolt hits a house in Georgia
18
All businesses are motivated by the desire to do what?
earn a profit
break even
lose money
force all other businesses to close
19
What is an example of a capital resource?
a hammer that is used to build houses
a person who sews shirts
a car that talks to the driver
a kid who rides a bike
20
Money is used to buy goods, services, and resources. It can also be used to
teach jobs to workers.
talk with others.
understand information.
save for future needs.

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