Why are goods and services important to the economy?

They provide jobs and satisfy consumer needs

What is an entrepreneur?

Someone who starts and runs a business

What are the four stages of the business cycle?

Prosperity, recession, depression, recovery

What does corporate social responsibility (CSR) mean?

Companies should give back to society and be ethical

What is the basic economic problem?

People have unlimited wants but limited resources

What is the main difference between goods and services?

Goods are tangible; services are intangible

Why is the recovery stage important?

Jobs return, and businesses rebuild

How can someone increase their competitiveness in the job market?

Earning new certifications and training

Why do some jobs become obsolete?

Technology replaces the need for workers

What is the main advantage of a partnership?

The owners split responsibilities and risks

What is the biggest disadvantage of a sole proprietorship?

Owner is responsible for all debt

Which of the following is a characteristic of a successful entrepreneur?

Has creativity and problem-solving skills

Why might a business focus more on services than goods?

Services create long-term customer relationships

What is a job market analysis?

A study of job availability, salaries, and skills

Which factor increases supply?

New technology that makes production easier

What is a target market?

A specific group of consumers a business wants to reach

A shortage of natural resources

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Unit 1: Business Basics Review

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Questions 36

Answers

1
Why are goods and services important to the economy?
They decrease consumer spending
Only services contribute to economic growth
The government owns all businesses that sell goods
They provide jobs and satisfy consumer needs
2
Which of the following is NOT one of the three economic questions?
For whom to produce it?
What to produce?
How to produce it?
Who will sell it?
3
What determines equilibrium price?
Where supply and demand meet
Government regulations
The highest price a business wants
A random selection
4
What is an entrepreneur?
Someone who starts and runs a business
A CEO of a large company
A government employee
A business investor
5
What happens to demand when a product’s price decreases?
Demand decreases
Demand increases
It depends on the government
Demand stays the same
6
Which industry is likely to grow due to technology advancements?
DVD rental stores
Fax machine production
AI and cybersecurity
Coal mining
7
Which of the following is an example of a good?
A gym membership
A car
A haircut
A taxi ride
8
What are the four stages of the business cycle?
Inflation, deflation, boom, bust
Prosperity, recession, depression, recovery
Growth, decline, stability, renewal
Rise, fall, pause, recovery
9
What does corporate social responsibility (CSR) mean?
Companies should give back to society and be ethical
Only nonprofit organizations need CSR
Business owners must make personal donations
Businesses should focus only on profits
10
What is the basic economic problem?
Everyone can get everything they want
Businesses don’t want to produce goods
People have unlimited wants but limited resources
There are no choices in economic decisions
11
What happens when demand is high but supply is low?
Prices increase
Prices decrease
Businesses stop producing goods
Government steps in to lower prices
12
What is the main difference between goods and services?
Goods are tangible; services are intangible
Services are more expensive than goods
Goods require more advertising than services
Services last longer than goods
13
What is the main sign of prosperity in the business cycle?
Decreasing wages
Strong job growth and spending
High unemployment
Low business profits
14
What happens when supply is high but demand is low?
More businesses enter the market
Prices decrease
Prices increase
There is no impact
15
Why is the recovery stage important?
Consumers save more money
Jobs return, and businesses rebuild
Businesses permanently lower prices
It allows businesses to shut down
16
Which of the following is an example of a service?
A smartphone
A haircut
A laptop
A pair of sneakers
17
How can someone increase their competitiveness in the job market?
Ignoring industry trends
Staying in the same industry forever
Earning new certifications and training
Refusing to gain new skills
18
Which business type is considered a separate legal entity?
Corporation
Partnership
Franchise
Sole proprietorship
19
Why do some jobs become obsolete?
Technology replaces the need for workers
Jobs never become obsolete
Government shuts down businesses
People stop wanting to work
20
Which of the following is a human resource?
A company logo
A manager
A delivery truck
A factory machine
21
What is the main advantage of a partnership?
Taxes are higher
The owners split responsibilities and risks
The business is easy to sell
It is less expensive than a sole proprietorship
22
Which of the following is part of the marketing mix?
Customer service policies
Business ownership types
Advertising strategies
Employee wages
23
Which factor affects job demand the MOST?
Consumer trends
The number of people in a city
The weather
Personal opinions
24
What is the biggest disadvantage of a sole proprietorship?
Owner has complete control
Business has limited flexibility
Owner is responsible for all debt
Business is difficult to start
25
Which type of business ownership allows stockholders to invest?
Partnership
Franchise
Corporation
Sole proprietorship
26
Which of the following is a characteristic of a successful entrepreneur?
Has creativity and problem-solving skills
Follows only traditional business models
Avoids risks
Prefers working for large companies
27
What happens during a recession?
Businesses grow quickly
Consumer spending increases
Prices go up
Unemployment increases
28
Why might a business focus more on services than goods?
Goods are more profitable
Goods don’t require employees
Services create long-term customer relationships
Services are easier to standardize
29
What is a job market analysis?
A way to predict the stock market
A study of job availability, salaries, and skills
A report on the history of businesses
A list of companies hiring in your town
30
Which phase of the business cycle involves high unemployment and failing businesses?
Recovery
Prosperity
Expansion
Depression
31
Which business type is owned by one person?
Franchise
Corporation
Partnership
Sole proprietorship
32
Which factor increases supply?
A shortage of workers
Increased prices of materials
A decrease in consumer demand
New technology that makes production easier
33
What is a target market?
The store location
The number of employees in a company
A specific group of consumers a business wants to reach
A business’s competitors
34
Which of the following is an example of ethical business behavior?
Selling defective products
Overcharging customers
Treating employees fairly
False advertising
35
Which of the following is NOT an economic resource?
Capital resources
Money
Human resources
Natural resources
36
What is scarcity?
The unlimited supply of goods
An increase in economic growth
A shortage of natural resources
The process of making products

Unit 1: Business Basics Review Flashcards | StudBud