AnswersGA-Introduction to Business and TechnologySummary 2

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1
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If the demand for a product decreases, what is likely to happen?

A
The supply is likely to increase.
B
The demand is likely to be inelastic.
C
The price is likely to increase.
D
The price is likely to decrease.
2
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What is a commodity?

A
Something that producers are unable to sell to consumers.
B
A resource that is available in unlimited quantities.
C
An exchange between a producer and a consumer.
D
Something of value that can be bought, sold, or traded.
3

Which two factors and their interaction regulate the market economy?

A
Goods and services
B
Producers and consumers
C
Product-based and service-based businesses
D
Public and private sectors
4

As a factor of production, how is capital created?

A
By adding land to entrepreneurship.
B
By adding human labor to land.
C
By removing land from services.
D
By using labor to create services.
5

Which of the following commodities is a good?

A
A swimming lesson
B
A desk
C
House cleaning
D
Dog walking
6

In a planned economy, prices of commodities are controlled by _________.

A
Supply and demand
B
Producers and consumers
C
The government
D
Private enterprises
7

In capitalism, what does competition do for consumers?

A
It limits the number of choices consumers have.
B
It prevents consumers from being entrepreneurs.
C
It lets consumers create monopolies.
D
It keeps prices fair for consumers.
8

If your company uses a nonprice competition strategy, what should you focus on?

A
Lower prices
B
Differentiation
C
Create direct competitors
D
Partner with the public sector
9

What does scarcity force people to do?

A
They produce commodities.
B
They make choices.
C
They consume products.
D
They increase inflation.
10

Which of the following is a sign of a strong economy?

A
An increase in GDP
B
A shrinking economy
C
An increase in unemployment
D
A decrease in spending power
11

If the demand for a product decreases, what is likely to happen?

A
The supply is likely to increase.
B
The demand is likely to be inelastic.
C
The price is likely to increase.
D
The price is likely to decrease.
12

A producer is _____________.

A
someone who makes a commodity available for sale or exchange
B
someone who buys or trades in order to receive a commodity
C
someone who is in the market for a commodity
D
someone who receives a commodity from a business
13

Which of the following is a sign of a strong economy?

A
An increase in GDP
B
A shrinking economy
C
An increase in unemployment
D
A decrease in spending power
14

If consumers start to believe they need a product such as medication, what is likely to happen?

A
The demand becomes less elastic.
B
The demand becomes more elastic.
C
The supply decreases.
D
The price decreases.
15

As a factor of production, how is capital created?

A
By adding land to entrepreneurship.
B
By adding human labor to land.
C
By removing land from services.
D
By using labor to create services.
16

According to the law of demand, what is likely to happen if the price of a product increases, all other factors remaining equal?

A
A
B
B
C
C
D
D
17

What is an increase in competition likely to do to the demand?

A
Increase the demand
B
Decrease the demand
C
Make the demand less elastic
D
Make the demand more elastic

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