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- 1. Multiple Choice
An entrepreneur is best defined as a person who
manages a business
is a role model for young Americans
manages the finances of a large corporation
takes financial risk to try new business ideas
- 2. Multiple Choice
Samuel F.B. Morse patented the
telegraph
automobile
audio recorder
radio transmitter
- 3. Multiple Choice
You are starting a lawn care business. Which of the following would be a needed land resource?
Lawns
Oil
Lawnmower
Hedge clippers
- 4. Multiple Choice
Your friend wants to open a clothing shop. A necessary capital resource is a
place to open the shop
knowledgeable fashion manager
license to conduct business
highway billboard for advertising
- 5. Multiple Choice
Meg and her mother are opening a cupcake shop. They buy an oven, a walk-in cooler, and a decorating table. In terms of factors of production, what are these items?
Capital
Entrepreneurship
Labor
Land
- 6. Multiple Choice
Jessica is a violinist who believes she can extend her method of learning music to early childhood education. She opens a preschool in her hometown, using her expertise to form an arts-based program. What factor of production is this?
Capital
Entrepreneurship
Labor
Land
- 7. Multiple Choice
Your friend likes to direct all the activities of his business. It would be best for him to create a
limited liability company
sole proprietorship
corporation
partnership
- 8. Multiple Choice
Your friend hopes to expand her business to multiple locations. It would be best for her to create a
limited liability company
sole proprietorship
corporation
partnership
- 9. Multiple Choice
Your friend lacks the financial capital to start a business. You offer to help him and he accepts. You and your friend create a
sole proprietorship
sole proprietorship
corporation
partnership
- 10. Multiple Choice
Antonia runs her own business as a cabinetmaker. What benefit and what drawback does her sole proprietorship entail?
Control over decision making, but high costs
Shared liability, but shared profits
Total control, but total liability
More investment, but double taxation
- 11. Multiple Choice
A monopoly is a market for a good or service that
has few competitive firms
is perfectly competitive
has one buyer
has one seller
- 12. Multiple Choice
An oligopoly is a market for a good or service that
has few competitive firms
is perfectly competitive
has one buyer
has one seller
- 13. Multiple Choice
The level of competition least beneficial to consumers is
oligopoly
monopoly
pure competition
monopolistic competition
- 14. Multiple Choice
A firm's purpose in nonprice competition is to
produce at the lowest cost possible
encourage other firms to cooperate in setting prices
establish extensive control of their particular market
distinguish their products from those of other companies
- 15. Multiple Choice
The most common form of nonprice competition is
collusion
advertising
diversification
specialization
- 16. Multiple Choice
The greatest goal in advertising is to convince us
"wants" are unnecessary
the firm has the best price
a particular product is a "need"
the product is the same as other firm's products
- 17. Multiple Choice
"You can't make a great peanut butter sandwich without Smuckers'® jelly!" This advertisement targets your
fears
rituals
emotions
social values
- 18. Multiple Choice
"Buy our cell phone with built-in calendar and reminder features! This way you will never forget an appointment while on the go." This advertisement targets your
fears
rituals
emotions
social values
- 19. Multiple Choice
Why do purely competitive markets tend to benefit consumers over producers?
Companies control quality and supply.
Companies work together to set prices favorable to consumers.
Competition is driven by factors other than price.
Consumers control price through demand.
- 20. Multiple Choice
Why do monopolies and oligopolies benefit producers over consumers?
Companies control price through demand.
Competition is driven by factors other than price.
Few producers can generally control prices.
Demand influences production more when competition is less.
- 21. Multiple Choice
A company will continue to hire workers until
there is no more room in the facility
the government restriction on workforce is reached
the additional profit is less than the cost of hiring
there is no more money available for capital investment
- 22. Multiple Choice
John sells pizzas for $10 each and earns $2 profit per pizza. He pays workers $8 per hour. What is the minimum number of pizzas a worker should produce per hour to be beneficial to John?
Two
Three
Four
Five
- 23. Multiple Choice
Which of the following is the most profitable investment for a candy shop that earns $1 profit per pound of candy?
Worker at $10 per hour, producing eight pounds of candy per hour
Worker at $12 per hour, producing 16 pounds of candy per hour
Machine with $5 per hour operating cost, producing 10 pounds of candy per hour
Machine with $8 per hour operating cost, producing 14 pounds of candy per hour
- 24. Multiple Choice
Which of the following is the least profitable investment for a candy shop that earns $1 profit per pound of candy?
Worker at $10 per hour, producing eight pounds of candy per hour
Worker at $12 per hour, producing 16 pounds of candy per hour
Machine with $5 per hour operating cost, producing 10 pounds of candy per hour
Machine with $8 per hour operating cost, producing 14 pounds of candy per hour
- 25. Multiple Choice
Which investment produces a $5 hourly profit for a candy shop earning $1 profit per pound of candy?
Worker at $10 per hour, producing eight pounds of candy per hour
Worker at $12 per hour, producing 16 pounds of candy per hour
Machine with $5 per hour operating cost, producing 10 pounds of candy per hour
Machine with $8 per hour operating cost, producing 14 pounds of candy per hour
- 26. Multiple Choice
Which of the following is the most profitable investment for a game shop earning $2 profit from every game sold?
Vehicle with $120 daily operating cost, delivering 80 games per day
Inventory software with $10 daily operating cost, saving 30 games per day from theft
Game cleaning system with $5 daily operating cost, increasing sales by 15 games per day
Electronic billboard with $20 daily operating cost, increasing sales by 20 games per day
- 27. Multiple Choice
Which of the following is the least profitable investment for a game shop earning $2 profit from every game sold?
Vehicle with $120 daily operating cost, delivering 80 games per day
Inventory software with $10 daily operating cost, saving 30 games per day from theft
Game cleaning system with $5 daily operating cost, increasing sales by 15 games per day
Electronic billboard with $20 daily operating cost, increasing sales by 20 games per day
- 28. Multiple Choice
Sam works as a transcriptionist for $30,000 per year, and Janet works as a jet propulsion specialist for $73,000 per year. Which of the following statements could best explain the disparity in their incomes?
Janet's expertise is in low supply and low demand.
Janet's expertise is in low supply and high demand.
Sam's expertise is in high supply and high demand.
Sam's expertise is in low supply and high demand.
- 29. Multiple Choice
A university has just hired additional faculty and staff. Who of the following is most likely to earn the highest pay?
Chemistry professor with a doctoral degree
Economics graduate student teaching assistant
Education lecturer with a master's degree
Classics department office manager with a bachelor's degree
- 30. Multiple Choice
Marco works as a freelance science writer. He wants to improve his productivity. Which of the following steps is he most likely to take?
Build a website highlighting his expertise and publications
Take a week off to relax and play video games
Invest in a better computer and a faster Internet connection
Take out an advertisement for his services
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