Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Revenues lost to lower prices can be made up through a. | higher
prices. | c. | lower
prices. | b. | higher volume. | d. | lower volume. | | | | |
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2.
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The
amount of goods or services that consumers are willing and able to buy is determined
by a. | price. | c. | demand. | b. | quantity. | d. | scarcity. | | | | |
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3.
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The
chances of a new business succeeding are good with a. | effective
planning and management. | c. | today’s
global economy. | b. | tax breaks. | d. | today’s job market. | | | | |
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4.
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A new
business's ability to start and grow is affected by which of these variables? a. | favorable taxes,
good markets, and supportive governmental policies | b. | incentives to
create new businesses | c. | the nature of the venture and availability of
resources | d. | all of the above | | |
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5.
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The
amount of a good or service that producers are willing to provide is called a. | services. | c. | supply. | b. | inelastic. | d. | volume. | | | | |
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6.
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A
business that is operating under a new name or a business that has been purposely discontinued to
start a new one is considered a a. | sole proprietorship. | c. | business failure. | b. | discontinuance. | d. | corporation. | | | | |
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7.
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A key
element in a market economy between similar businesses is a. | competition. | c. | low
prices. | b. | service. | d. | exporting. | | | | |
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8.
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A
business that files Chapter 7 bankruptcy and loses money for creditors and investors is considered
a a. | new
venture. | c. | business
failure. | b. | service business. | d. | discontinuance. | | | | |
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Completion
Complete each sentence or
statement.
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9.
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A(n)
____________________ is a new business undertaking that involves risks.
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10.
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When
people have the right to make economic choices, they live in a(n) ____________________.
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11.
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A new
movie video is released. Everyone rushes to buy it and a shortage develops. Stores order more and
then have a surplus. The store reduces the price of the video and sells the excess inventory. They
have achieved ____________________.
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12.
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An
idea plus a(n) ____________________ equals an opportunity.
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13.
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The
____________________ has resulted in new resources, markets, and ideas.
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14.
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If a
small change in the price of an item causes a significant change in the quantity demanded, we say
that the demand for the item is ____________________.
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15.
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If a
change in price has little or no effect on the quantity demanded, we say that demand for the item is
____________________.
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16.
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A
free enterprise system is also called ____________________ or a market economy.
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Matching
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Match each item with the correct statement below. a. | venture | e. | entrepreneur | b. | enterprise zones | f. | opportunity | c. | equilibrium | g. | profit | d. | economics | h. | entrepreneurship | | | | |
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17.
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the
study of how nations allocate scarce resources to the production and distribution of
products
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18.
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an
idea that has commercial value
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19.
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an
individual who undertakes the creation, organization, and ownership of a business
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20.
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specially designated areas of a community that provide tax benefits to new
businesses
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21.
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money
left over after all the expenses of running a business have been deducted from the
income
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22.
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the
process of recognizing an opportunity, testing it in the market, and gathering resources necessary to
go into business
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23.
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the
point at which consumers buy all of a product that is supplied
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24.
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a
business undertaking involving risk
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