EPF Test Review

Question 1

The most common form of business organization in the USA is corporation.

Accepted Answer

False

Question 2

Which type of business is owned by only one person?

Accepted Answer

sole proprietorship

Question 3

Which economic system is based on the government determining what to produce?

Accepted Answer

command

Question 4

Which is the branch of economics that deals with analysis of the whole economy?

Accepted Answer

macroeconomics

Question 5

If the marginal benefit is higher than the marginal cost, you should do it!

Accepted Answer

True

Question 6

Economics is the study of choices and the distribution of scarce resources

Accepted Answer

True

Question 7

Which country has a market economy?

Accepted Answer

Ireland

Question 8

Consumers buy more goods at higher prices.

Accepted Answer

False

Question 9

Most countries in the world today have a mixed economy.

Accepted Answer

True

Question 10

North Korea has a market economy

Accepted Answer

False

Question 11

What is it called when quantity supplied is more than quantity demanded?

Accepted Answer

surplus

Question 12

Which economic system is driven by competition and based on private ownership and individual decisions?

Accepted Answer

market

Question 13

What encourages people to make certain choices?

Accepted Answer

incentives

Question 14

Factors of Production are...

Accepted Answer

land, labor, capital and entrepreneurship, the resources used to produce goods and services

Question 15

Sole proprietorship is the easiest type of business to form which is why it is the most common.

Accepted Answer

True

Question 16

Which is the branch of economics that deals with analysis of individual choices?

Accepted Answer

microeconomics

Question 17

Marginal thinking is the analysis of the costs and benefits of producing or consuming...

Accepted Answer

one more thing

Question 18

We have limited resources to meet our unlimited wants. This is?

Accepted Answer

scarcity

Question 19

Producers will supply more goods at higher prices.

Accepted Answer

True

Question 20

What is it called when quantity supplied is less than quantity demanded?

Accepted Answer

shortage

Question 21

According to Adam Smith, a nation's wealth is in...

Accepted Answer

its productive resources

Question 22

Which type of business involves shareholders and makes up the majority of US business income?

Accepted Answer

corporation

Question 23

Which type of business is jointly owned by two or more people?

Accepted Answer

partnership

Question 24

The marginal cost of labor is the...

Accepted Answer

amount paid to 1 additional worker

Question 25

Entrepreneurship includes...

Accepted Answer

taking risks, having a new idea, potentially making profits

Question 26

Every economic system answers which questions?

Accepted Answer

What to produce?, Who to produce for?, How to produce?

Question 27

What is the point where supply and demand meet?

Accepted Answer

equilibrium

Question 28

Which economic system has free enterprise but also government involvement?

Accepted Answer

mixed

Question 29

Decreased productivity leads to a higher standard of living.

Accepted Answer

False

Question 30

Which economic system is based on custom and belief?

Accepted Answer

traditional

EPF Test Review

Questions 30

EPF Test Review

Questions 30