2.03 - 2.05 Test

The amount of money paid for raw materials and products sold is called

For each new product it offers, a business seeks

One way that competition helps build a prosperous society is by

Requiring a contractor to purchase a surety bond is an example of handling business risk by __________ the risk.

Who answers the basic economic questions in a private enterprise economic system?

Which of the following is a potential problem in market economies:

Offering high quality, large assortments, and free shipping are examples of

Which of the following items is found in all economic systems:

Storm and flood damage is a human risk

People who go into business know that the business may not succeed. This possibility is referred to as business

A major problem for individuals and private businesses in a socialist command economy is

You move your store from an isolated corner to a busy mall.

The general classifications of business risks are

One of the factors that directly limits the economic freedom of individuals in a private enterprise system is government

Basketball shoes endorsed by professional players are no longer trendy among teenagers is a natural risk

Reputation damage is a strategic risk

Burger King and McDonald’s are examples of

Which of the following is one of the main principles of the private enterprise system:

Individuals put limits on their own economic freedom by

Possibility of loss, no change, or gain is speculative risk

To use resources wisely, business owners must reduce

Every society must develop a system for deciding how it will use its resources so that it can

When a business keeps a risk because management is unaware of it, the business is __________ the risk.

The most common medium of exchange in modern economic systems is

In business terms, what is profit?