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- 1. Multiple Choice
Which economic player is most closely associated with the dual role of consumer and producer?
entrepreneur
factory owner
worker
shopper
- 2. Multiple Choice
Which best explains the purpose of market research?
Market research helps producers earn more profits
Market research leads to efficient production
Market research keeps the economy growing
Market research gives consumers reliable product information
- 3. Multiple Choice
Which is an essential part of making a rational choice?
balancing financial and non-financial goals
conducting a cost-benefit analysis
calculating monetary values
evening out utilities
- 4. Multiple Choice
Which is a technique advertisers employ to increase consumer demand for goods and services?
branding a product based on negative news story
making sure that there are only benefits
selling goods for less than they cost to produce
turning luxuries into necessities
- 5. Multiple Choice
Which does branding accomplish?
creates a positive association
allocates resources
warns about dangers
differentiates products
- 6. Multiple Choice
What encourages producers to reduce costs and increase revenues?
marginal analysis
the profit motive
opportunity costs
the production possibilities frontier
- 7. Multiple Choice
Which is an advantage corporations enjoy over partnerships?
Corporations involve less paperwork and fewer management fee
taxes paid by a corporation are generally much smaller
owners of corporation don't work together to make decisions
partnerships can't protect investors against business debts
- 8. Multiple Choice
The action of buying an item because everyone else is doing it is called?
trend
price
environmental
cultural
- 9. Multiple Choice
Which does startup capital pay for?
expanding production and advertising budgets
operating expenses for the first year of a new business
funding for research and development of a business idea
competitive wages for high-tech workers
- 10. Multiple Choice
Which best states one of the disadvantages of equity financing?
The purchase of productive inputs requires more than equity financing can yield.
Seed capital and startup capital are necessary before equity can be sold.
Selling stock gives the shareholders some control over the company.
Equity financing is only possible for large corporations with a history of high profits.
- 11. Multiple Choice
Which accurately describes an initial public offering (IPO)?
government takeover of a business
establishment of a new business
first sale of stock to the public
beginning of the productive process
- 12. Multiple Choice
Which is a stockholder's share of a company's profits?
utlitiy
certificates
revenue
dividends
- 13. Multiple Choice
Which is an advantage a company enjoys by offering shares for sale in a stock market?
The management gains more power over the operation of the business.
Administrative costs are decreased by the existence of shareholders.
The company can increase its capital without going into debt.
The government relaxes its restrictions when a company is publicly owned.
- 14. Multiple Choice
An advantage to a partnership is
shared investment in the company.
only one person owns the company.
stockholders own portions of the company.
each decision doesn't need everyone's opinion.
- 15. Multiple Choice
What is the outcome of revenue minus business costs?
expenses
profit
partnership
utility
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