AnswersPersonal Finance - EL3403Case Study: Starting a Business

Case Study: Starting a Business — Unit test Answers

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41
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What forces businesses, industries, and governments to make decisions?

A
services
B
producers
C
goods
D
scarcity
42
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Gabriela owns a company that makes silk scarves. She buys the silk from an overseas supplier and is subject to a tax on imported goods. Gabriela most likely lives in

A
a closed economy with limited government regulation.
B
a pure market economy with no government regulation.
C
a command economy with heavy government regulation.
D
a mixed market economy with some government regulation.
43

An entrepreneur would most likely be a

A
low risk taker.
B
spontaneous person with an unclear vision.
C
person who works well alone.
D
person who has a brief work week.
44

This graph shows the division of wealth in the United States in 2010.Based on this graph, how much wealth did the top 20 percent of the population hold?

Question illustration
A
about 35 percent
B
about 55 percent
C
about 80 percent
D
about 90 percent
45

The goal of a command economy is to

A
sustain self-sufficiency.
B
preserve traditional customs.
C
create equality within a society.
D
promote free economic choices.
46

What is the best definition of marginal revenue?

A
the possible income from producing an additional item
B
the price of producing one additional unit of a good
C
the additional income gained from selling an additional good
D
the financial gain from business activity minus expenses
47

In the market, actions known as incentives affect

p
producers only.
c
consumers only.
c
consumers or producers.
n
neither consumers nor producers.
48

In economics, if a good is inelastic,

A
consumers have lost an interest in purchasing it.
B
producers have lost an interest in manufacturing it.
C
its supply or demand is too sensitive to price changes.
D
its supply or demand is not sensitive to price changes.
49

Which nation has a communist command economy?

A
Norway
B
North Korea
C
South Korea
D
the United States
50

A new business should be based on an entrepreneur's individual interests because the entrepreneur must

A
have sufficient confidence to succeed.
B
be willing to take personal responsibility.
C
have enough determination to work alone.
D
dedicate as many hours as needed to the work.
51

[BLANK]

A
consuming
B
creating
C
developing
D
revising
52

What are some reasons for studying economics? Choose three answers.

A
Economics has an impact on everyday life.
B
Economics helps people learn to manage resources.
C
Economics describes the reasons products are scarce.
D
Economics explains the roles of producers and consumers.
E
Economics shows how people work together to make money.
53

Which factor should be most important if you are considering purchasing a new video game?

A
the number of games available for purchase
B
the quality of the games produced by that manufacturer
C
the popularity of the video game with your friends
D
the other things you could do with your money instead
54

In a mixed market economy, a fire breaks out in a sneaker factory. The repair work most likely will be paid by

A
the government group that runs the factory.
B
the state agency that operates the factory.
C
the city official who manages the factory.
D
the private citizen who owns the factory.
55

The most common economic system in the world is a

A
closed economy.
B
command economy.
C
mixed market economy.
D
traditional economy.
56

The most common economic system in the world is a

A
closed economy.
B
command economy.
C
mixed market economy.
D
traditional economy.
57

Read the graph.

Question illustration
A
Fewer new businesses were started in 2010 than in other years.
B
The opening of new businesses peaked between 2007 and 2008.
C
More new businesses were started in 2006 than in 2005.
D
The number of new businesses remained constant between 2006 and 2009.
58

Look at the graph examining the market for graphic T-shirts.

Question illustration
A
5 graphic T-shirts on sale for $6
B
10 graphic T-shirts on sale for $30
C
30 graphic T-shirts on sale for $10
D
55 graphic T-shirts on sale for $6
59

is the act of working in exchange for an income.

Answer not available
60

How might a drop in price for washing machines affect the demand for dryers?

A
The demand for dryers would have no relation to the changing prices of washing machines.
B
The demand for dryers would most likely increase as the price for washing machines dropped.
C
The demand for dryers would most likely decrease as the price for washing machines dropped.
D
The demand for dryers would only be affected by an increase in the price of washing machines.

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