Case Study: Starting a Business — Quiz

Question 1

Which statement correctly compares the two businesses?

Revolt · Accepted Answer

In Case will require a less costly investment in labor, while Wrap It Up will require less capital in the long term.

Question 2

Anytown households that earn more than $75,000 tend to buy sports equipment, while households that earn less than $75,000 tend to buy TVs. Which new business would be most likely to succeed?

Revolt · Accepted Answer

an electronics store

Question 3

Based on the survey data, what will occur if a new pizza place opens?

Revolt · Accepted Answer

It will help to satisfy the demand.

Question 4

Sabrina’s Soccer produces soccer balls and soccer nets, which are sold at sporting goods stores. Which factors directly affect the company’s profit? Choose three correct answers.

Revolt · Accepted Answer

a decrease in the cost of raw materials; the opening of two sporting goods stores; a rise in the number of soccer leagues

Question 5

Sabrina’s Soccer produces soccer balls and soccer nets, which are sold at sporting goods stores. Which factors directly affect the company’s profit? Choose three correct answers.

Revolt · Accepted Answer

a rise in the number of soccer leagues; the opening of two sporting goods stores; a decrease in the cost of raw materials

Question 6

How can producers make the most profit? Choose three correct answers.

Revolt · Accepted Answer

They can work to decrease their marginal cost.; They can raise prices to increase marginal revenue.; They can keep marginal costs below marginal revenues.

Question 7

Profit equals the total amount of money made minus

Revolt · Accepted Answer

the production cost.

Question 8

What is the difference between absolute advantage and comparative advantage?

Revolt · Accepted Answer

Absolute advantage is the ability to produce a good or a service at a lower production cost than competitors. Comparative advantage is the ability to produce a good or service at a lower opportunity cost than competitors.

Question 9

Based on the survey data, what will occur if a new pizza place opens?

Revolt · Accepted Answer

It will help to satisfy the demand.

Question 10

Which statement correctly compares the two businesses?

Revolt · Accepted Answer

In Case will require a less costly investment in labor, while Wrap It Up will require less capital in the long term.

Case Study: Starting a Business — Quiz Answers

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