If the price of sugar rises, which is least likely to take place?

There will be no change in the price of jelly beans.

Which is NOT an advantage to organizing a business as a corporation?

The owner can make major decisions quickly & easily.

Strengths of a sole proprietorship include all of the following except ___.

Owner risks his/her savings & personal property

Which is NOT one of the "basic economic questions" that all economies must answer?

What can be done to help the poor?

What role does the profit motive play in a market economy?

Encourages people to open new businesses & make new products

For workers at a large corporation, such as Wal-Mart or Ford, a problem could be that ___.

Feeling like no one in charge cares about them as a person.

A weakness of working as an employee of a sole proprietorship or small partnership may be ___.

Owner can't afford to pay you well &/or offer good benefits.

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Economics Unit I Review

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Types/purposes of economy, ways business is organized, basic economic questions & factors of production.

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Questions 25

Answers

1
The money a company spends on advertising & the equipment it uses to produce are both ___.
Labor
Capital
Entrepreneurship
Land
2
If the price of sugar rises, which is least likely to take place?
There will be no change in the price of jelly beans.
Sugar farmers will make more profit.
Coca-Cola will use other sweeteners besides sugar.
Hershey will charge more for Kisses.
3
In a ___ economy, consumers decide the answers to the four basic economic questions.
Market
Traditional
Traditional
Command
4
Increases in minimum wage are often followed by __.
Increase in prices of basic necessities like milk & diapers.
Job cuts & layoffs.
All of the Above
Price increases by people employing minimum wage workers.
5
Which is NOT an advantage to organizing a business as a corporation?
The business can get capital to expand by selling stock.
Stockholders can only lose money they invested & not savings
The owner can make major decisions quickly & easily.
Investors can make money & help the company by buying stock
6
About the only positive characteristic of a command economy is that ___.
No one is poor or hungry
People are rewarded for new ideas or products.
All needs are easily met & there's plenty left for our wants
Basically everyone has a job.
7
In a ___ economy, the basic economic questions are answered in the same way as they always have
Market
Command
Mixed
Traditional
8
Monopolies create unfair situations for consumers because their goods/services are usually ___.
All of the Above
Only made to be exported to other countries
Low priced due to the competition with other producers
Overpriced & low quality
9
Strengths of a sole proprietorship include all of the following except ___.
Owner risks his/her savings & personal property
Owner & employees often have a close relationship.
Owner keeps all profits.
Owner sets the hours/days business is open.
10
Adding stuff (tinted windows, sound system, etc) to a car is ___. So is buying the car itself.
Charity
Investing
Saving
Spending
11
Strengths of organizing a business as a sole proprietorship include ___.
Owner & employees usually have a close relationship.
Owner keeps all profits.
All of the Above
Owner acts as own boss.
12
Which describes the basic economic problem facing all people, companies & governments?
Monopoly
Profit
Scarcity
Capital
13
Which is NOT one of the "basic economic questions" that all economies must answer?
What can be done to help the poor?
What will be produced?
Who gets what is produced?
How much will be produced?
14
What role does the profit motive play in a market economy?
Encourages people to open new businesses & make new products
Gives legal permission for monopolies to operate.
It makes the government taking over the means of production.
Guarantees all citizens to have a high standard of living.
15
Why is competition between producers good for consumers?
The quality of goods/services improves.
Consumers have choices
All of the Above
Prices drop over time.
16
For workers at a large corporation, such as Wal-Mart or Ford, a problem could be that ___.
They are typically paid less than minimum wage.
Full-time workers are not offered benefits like insurance.
Feeling like no one in charge cares about them as a person.
The owner of the business may decide to suddenly retire.
17
A business that wants to quickly reduce its operating costs usually decreases spending on __?
Land
Labor
Capital
Entrepreneurship
18
A weakness of working as an employee of a sole proprietorship or small partnership may be ___.
Owner can't afford to pay you well &/or offer good benefits.
All of the Above
The stockholders may demand that the owner(s) eliminate jobs
Owner(s) may not notice your hard work & extra effort.
19
Increasing the minimum wage would possibly hurt low-skill workers because ___.
Higher wages will increase the number of people applying.
Bosses will invest in capital (robots, etc) instead of labor
All of the Above
Businesses will hire fewer people but have them do more.
20
Strengths of organizing business as a partnership include all of the following except ___.
Owners can cover for each other if one's sick or on vacation
Each partner can use talents & knowledge to help business
Owners must split the profits
Owners split up all debts & costs.
21
How have good entrepreneurs managed to make profits off of pencils even though are very cheap?
Selling different kinds of pencils for different uses.
Putting colors/designs on them & people will pay more.
Selling them pre-sharpened because lazy people will pay more
All of the Above
22
In a ___ economy, the government owns all means of production & decides who gets the output.
Traditional
Market
Command
Mixed
23
Why are MOST of the largest businesses (Apple, Nike, etc) organized as corporations?
They can continue operating after original founder dies.
Corps. can get large amounts of capital by selling stock.
No individual/small group has the $ for such a big business
All of the Above
24
Buying stock or real estate such as rental properties is _____.
Spending
Saving
Charity
Investing
25
If McDonald's needed to raise lots of capital, it would most likely __.
Decrease the pay of its workforce.
Sell more stock.
Ask owners of local McDonald's restaurants for a loan.
Merge (join together) with Wendy's & other competitors.

Economics Unit I Review Flashcards | StudBud