Nonprofit organizations

are not taxed by the government

The law of supply states that

businesses will provide more products when they can sell at higher prices

The duty of a corporation's board of directors is to

represent stockholders in making decisions for the corporation

The law of demand states that

consumers will purchase fewer products when they must buy at higher prices

manufactured goods used to make other goods

What is a disadvantage unique to a partnership?

Daily operations can suffer due to disagreements

All of the following are roles played by the U.S. gov. in the economy EXCEPT

regulating profits of the largest corporations

The U.S. economic system can best be described as a mixed economy because

businesses operate freely but must follow certain government regulations

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Chapter 17

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Questions 19

Answers

1
Nonprofit organizations
are sole proprietorships
are examples of trusts
are not taxed by the government
are always organized like corporations
2
An entrepreneur
assumes all the risks of a business to try to make a profit
is an important part of creating society's wealth
all of the above
often puts up his or her own capital and labor to start a business
3
A high school student wants to publish and sell a national high school newsletter, he will set up his business as a
corponation
monopoly
trust
conglomerate
4
An essential factor of a free market economy is
competition
profit
availability of resources
government assistance
5
What type of economic system does the United States have?
Traditional
Free market
command
wants and needs
6
The law of supply states that
businesses will provide more products when they can sell at higher prices
businesses will provide fewer products when they can sell at higher prices
consumers will purchase fewer products when they must buy at higher prices
consumers will purchase fewer products when they buy them at lower prices
7
The duty of a corporation's board of directors is to
keep the corporation from paying dividends
pay off debts if the corporation fails
oversee the day-to-day operations or the corporation
represent stockholders in making decisions for the corporation
8
Corporations are owned by
managers
partners
entrepreneurs
stockholders
9
The law of demand states that
businesses will provide fewer products when they can sell at higher prices
consumers will purchase fewer products when they must buy at higher prices
businesses will provide more products when they can sell at higher prices
consumers will purchase fewer products when they buy them at lower prices
10
Which of the following is NOT one of the four factors of production?
natural resources
labor
entrepreneurship
wealth
11
Capital is
land and other natural resources
all money coming into a business
manufactured goods used to make other goods
money used to pay salaries
12
What is a disadvantage unique to a partnership?
Personal property can be lost if the business fails
All profits of the business belong to the owners
Daily operations can suffer due to disagreements
more than one person provides capital
13
How does capitalism benefit the American people as a whole?
It inspires innovation in developing products
It encourages people to invest money for financial success
It promotes the production of quality products
All of the above
14
If one large company owned all of the hotels in one country, that company would have a
free market
nonprofit organization
monopoly
dividend
15
All Americans enjoy the following economic freedoms EXCEPT the freedom to
own property
buy and sell various goods
earn a profit
fix prices
16
A small, family-owned bakery is an example of a
sole proprietorship
corporation
conglomerate
nonprofit organization
17
All of the following are roles played by the U.S. gov. in the economy EXCEPT
protecting consumers from harmful products
preventing pollution of the environmennt
providing loans to businesses
regulating profits of the largest corporations
18
In a command economy, most of the capital, tools, and production equipment are
privately owned
owned by the government
unregulated
outdated
19
The U.S. economic system can best be described as a mixed economy because
businesses follow the laws of supply and demand
businesses operate freely but must follow certain government regulations
there are both small and large businesses
there is competition for resources and profit amongst businesses

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