Business 001 - Introduction to Business » Fall 2020 » Chapter 1 Quiz

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Question #1
Profit may be defined as the difference between a business's revenues and its expenses.
A.   TRUE
B.   FALSE
Question #2
The four factors of production are:
A.   labor, entrepreneurs, risk and capital
B.   labor, capital, entrepreneurs and ergonomics
C.   entrepreneurs, labor, taxes and time
D.   physical resources, labor, capital and entrepreneurs
Question #3
An economic system is a nation's system for allocating its resources among its citizens.
A.   FALSE
B.   TRUE
Question #4
A _______________ economy relies on central government control of most factors of production.
A.   market
B.   capitalist
C.   mixed
D.   planned
Question #5
Marx proposed that individuals would contribute according to their ______________________ and receive benefits according to their____________________.
A.   abilities, needs
B.   desires, abilities
C.   wants, income
D.   needs, abilities
Question #6
Capitalism allows _______________ ownership of the factors of production.
A.   sole
B.   private
C.   single
D.   multiple
Question #7
______________________________ is a partially planned system in which the government owns and operates selected major industries.
A.   Socialism
B.   Capitalism
C.   Fascism
D.   Communism
Question #8
Supply is the willingness and ability of buyers to purchase a product, good or service and demand is the willingness and ability of producers to offer a good or service for sale.
A.   FALSE
B.   TRUE
Question #9
The law of demand states that buyers will purchase more of a product as it price drops and less of a product as its price increases.
A.   TRUE
B.   FALSE
Question #10
The law of supply states that producers will offer less of a product as its prices rises and more of a product as its price drops.
A.   FALSE
B.   TRUE
Question #11
The market price, also known as the _________________price, is the price at which the quantity of goods demanded and the quantity of goods supplied are equal.
A.   equilibrium
B.   buying
C.   suggested
D.   mark up
Question #12
When an oligopoly exits, the sellers are generally quite large, and a large capital investment is required for entry into the market.
A.   FALSE
B.   TRUE
Question #13
Gross national product (GDP) may be defined as the total value of all goods and services produced within a given period by a national economy.
A.   FALSE
B.   TRUE
Question #14
Fiscal policy focuses on controlling the size of the nation's money supply, and monetary policy is how the government manages the collection and spending of its revenue.
A.   FALSE
B.   TRUE
Question #15
A recession is a period during which aggregate output (GDP) declines, and a prolonged and deep recession is known as a depression.
A.   FALSE
B.   TRUE

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