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- 1. Multiple Choice
Which accurately explains how profit is calculated?
Total retail sales are determined.
Costs are subtracted from revenues.
Benefits and costs are balanced.
Gross domestic product is calculated.
- 2. Multiple Choice
Which explains how revenue is determined?
The maximum level of benefits is figured.
Costs are subtracted from revenues.
Gross domestic product is calculated.
The total amount of money brought in by sales is calculated.
- 3. Multiple Choice
Which directly generates revenue for a business?
output
assets
capital
resources
- 4. Multiple Choice
Which best explains what the profit motive pushes producers to do?
minimize costs and maximize revenue
produce as much as possible
achieve the maximum revenue
balance monetary and nonmonetary benefits
- 5. Multiple Choice
Which identifies the reason why producers try to minimize costs and maximize revenue?
government regulations
market research
product placement
the profit motive
- 6. Multiple Choice
Which best states the purpose of using a production possibilities frontier?
pursuing the profit motive
maximizing revenue
balancing economic goals
setting up efficient production
- 7. Multiple Choice
Which statement best explains how using a production possibilities frontier (PPF) helps set up efficient production?
A PPF helps predict whether gross domestic product is rising or falling.
A PPF shows the maximum amount of goods that can be produced with a given set of inputs.
A PPF allows a producer to calculate the cost of producing one more unit of goods.
A PPF allows a producer to balance supply and demand in order to find the best selling price.
- 8. Multiple Choice
Which is a market structure that can exist in a free-market system?
socialist planning
communism
government planning
monopolistic competition
- 9. Multiple Choice
Which is a market structure characterized by at least some competition between producers?
monopoly
socialist planning
oligopoly
command economy
- 10. Multiple Choice
Which describes a situation where monopolistic competition exists?
A small number of producers are selling identical products.
Many producers are selling slightly differentiated products
Fewer than five producers command the entire market for a certain good or service
A single producer is the only one selling a good or service with no close substitutes.
- 11. Multiple Choice
Which best describes a situation where an oligopoly exists?
A small number of producers command nearly the entire market for a certain good or service.
Many producers are selling slightly differentiated products that are close substitutes of each other.
A large number of businesses are selling identical products to a well-informed customer base.
A single producer is the only one selling a good or service with no close substitutes.
- 12. Multiple Choice
Which type of market structure is most closely associated with the automobile industry?
pure competition
monopoly
monopolistic competition
oligopoly
- 13. Multiple Choice
Which type of market structure is most closely associated with fast-food restaurants?
pure competition
monopoly
monopolistic competition
oligopoly
- 14. Multiple Choice
Which characteristic or motivation is not strongly associated with entrepreneurs?
high risk aversion
working for oneself
profit
innovation
- 15. Multiple Choice
Which do entrepreneurs not use to introduce innovation into a market?
new products
new economic systems
new means of production
new forms of organization
- 16. Multiple Choice
Which is the main source of revenue for media corporations?
product placements
advertising
rating systems
subscriptions
- 17. Multiple Choice
Which best explains why companies pay for advertising space?
make sure costs are balanced with revenues
generate better ratings for their programs
expose an audience to messages about their products
increase circulation for their magazine or newspaper
- 18. Multiple Choice
Which statement best describes what purchasing advertising space does for advertisers?
Advertising space generates higher circulation and better ratings.
Advertising space exposes a company's products to an audience of potential customers.
Advertising space fills magazines and newspapers to their full print capacity.
Advertising space allows a company to transmit product information to its investors.
- 19. Multiple Choice
Which controls almost all of the media industry?
a few large companies
small broadcasters
government agencies
innovative entrepreneurs
- 20. Multiple Choice
Which dominates the media industry?
innovative entrepreneurs
monopolistic markets
Internet news sources
media conglomerates
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