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- 1. Multiple Choice
A computer game that can be purchased online and played right away has good ________ utility.
Form
Information
Value
Time
- 2. Multiple Choice
Hours of labor or number of workers are common ways of measuring a company's _________?
Division of Labor
Productivity
Use of Technology
Diminishing Returns
- 3. Multiple Choice
A company's ________ tells you how much money the company has left over after subtracting all expenses.
Net Profit
Gross Profit
Revenue
Cost of good sold
- 4. Multiple Choice
___________ is the ability of a product to satisfy a customer.
Economic utility
Value
Purchasing Power
Outsourcing
- 5. Multiple Choice
Which of the following is a variable cost for a company that makes bread?
The rent for a warehouse
Bread Ingredients
An oven
A salaried worker
- 6. Multiple Choice
If your company has a large production-related task, such as assembling an airplane, what strategy could help you increase productivity?
Generalization
Decreasing your use of technology
Raising prices
Division of labor
- 7. Multiple Choice
Which of the following is a fixed cost for a company that sells greeting cards online and mails the printed cards to customers?
The paper and glue to make the cards
Hourly workers who assemble and ship the cards
Packaging and shipping costs
A paper cutting machine
- 8. Multiple Choice
Which type of utility can only be added by the maker of the product?
Place utility
Possession utility
Form Utility
Time utility
- 9. Multiple Choice
Your company buys a car, and its value goes down over time. What is that process called?
Leasing
Depreciation
A unit of sale
Interest
- 10. Multiple Choice
Which of the following is part of the cost of goods or services sold for a company that paints people's homes?
Paint
Flyers to promote the company
A van to travel to people's homes
Fuel for the van
- 11. Multiple Choice
If productivity increases significantly and demand is not very elastic, what is likely to happen?
The number of consumers will increase
Fewer workers will be needed
Division of labor will decrease
Demand will increase
- 12. Multiple Choice
How is the value of a product determined?
By the amount a consumer is willing to pay for it
By how much it cost the producer to make
By its variable costs
By the number of workers who were involved in making it
- 13. Multiple Choice
The law of diminishing returns is often used to analyze the ideal amount of which factor of production?
Capital
Land
Entrepreneurship
Labor
- 14. Multiple Choice
Which of the following is a way to increase possession utility for a refrigerator?
Creating brochures about the product
Providing a delivery service
Expanding the store hours
Making a web site with information about the product
- 15. Multiple Choice
Economies of scale give an advantage to what type of company?
A company with a small number of employees
A company that makes many sales
A company with many variable costs
A service-based company
- 16. Multiple Choice
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total REVENUE?
$25
$525
$225
$750
- 17. Multiple Choice
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total COST?
$25
$525
$225
$750
- 18. Multiple Choice
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total PROFIT?
$25
$525
$225
$750
- 19. Multiple Choice
You own a lawn-care business and you have two employees. You pay these employees a salary meaning you pay each of these workers $900 every month no matter how much they work. This is an example of a...
Fixed Cost
Variable Cost
- 20. Multiple Choice
Anna bought a lamp at a garage sale. She repaired it and painted it, then she sold it for a profit. The list below is what she did:
*paid for the lamp $5
*cost to paint $3
*cost for new shade $7
*selling price $30
What was Anna's profit from selling the lamp?
$25
$15
$20
$35
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