What is the definition of a non-profit business?

Doesn't make profit but raises funds for specific goals

What best describes the law of demand?

As the price increases, the quantity purchased will decrease

What best describes the law of supply?

As the price increases, the quantity produced will increase

the amount of goods/services desired by consumers

The following are all examples of how businesses can increase demand except:

Do nothing and hope you get more customers

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BBI1O/2O Chapter 1 Test Review

18 termsStudBud Administration43 plays

Reviewing key terms learned from Chapter 1 in Intro to Business at Bennies.

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Questions 18

Answers

1
Which of the following would be considered a consumer ‘need’?
Latest video game
New car
Cell phone
Clothes
2
What is the definition of a non-profit business?
Doesn't make profit but raises funds for specific goals
Makes profit to expand, improve products or give to owners
Doesn't seek to make profit - uses money to improve services
Continuously losing money and will soon be bankrupt
3
The following are Factors of Production EXCEPT:
Natural Resources
Unnatural Resources
Capital Resources
Human Resources
4
What best describes the law of demand?
As the price increases, the quantity purchased will decrease
As the price decreases, the quantity purchased will decrease
As the price increases, the quantity purchased will increase
As the price decreases, the quantity sold will increase
5
An example of a want is…..
Water
Both Video Game and Computer
Computer
Video Game
6
What best describes the law of supply?
As the price increases, the quantity produced will increase
As the supply increases, the quantity produced will raise
As the price increases, the quantity produced will decrease.
As the price increases, the quantity will stay the same
7
Demand refers to:
the amount of goods/services available to consumers
the amount of goods/services desired by consumers
the amount of goods/services supplied by businesses
the amount of goods/services imported by businesses
8
Businesses can be categorized into the following categories:
Product or Service
Risky or Safe
Natural or Capital
Useful or Useless
9
The term for a product which no one wants to buy any more, such as a VCR, is:
none of the above
absolute
discontinued
obsolete
10
Profit can be calculated by using the profit equation:
Profit = Expenses – Revenue
Profit = Expenses + Revenue
Profit = Selling Price - Expenses
Profit = Revenue - Expenses
11
Increased fertilizer prices will cause the supply of vegetables to increase.
True
False
12
The following are all examples of how businesses can increase demand except:
Offer free samples
Do nothing and hope you get more customers
Create a new product
Offer sales or coupons
13
How businesses rely on each other refers to
pricing power
marketplace
equilibrium
interdependence
14
How would you categorize a small to medium sized business?
0-500 employees
100-500 employees
500-1000 employees
0-100 employees
15
When a business is in complete control and consumers have no other place to buy a certain item:
Consumers have purchasing power
Businesses have pricing power
Businesses have selling power
Consumers have pricing power
16
Importing high quality products from China will cause demand for Canadian products to decrease
False
True
17
Competition is good for businesses and consumers because:
It leads to innovation
Allows consumers to have purchasing power
All of the above
Businesses learn from one another
18
An example of a Capital Economic Resource is…
Machines
Workers/labour
Water
Fish

BBI1O/2O Chapter 1 Test Review Flashcards | StudBud