Packet Questions 31- 60

A popular product is said to be

in demand

Which activities are likely to increase a firm's profit

increasing sales and decreasing production

Private enterprise is based on the idea that everyone is better served when

individuals are free to set their own goals

Which of the following is a public good provided by the government?

interstate highways

Which of the following is a disadvantage of private enterprise?

periods of unemployment

Alex owns a guitar, several books a car and a telescope. Alex's possessions are examples of

private property

Businesses can protect themselves from the risk associated with lost shipments by

purchasing transportation insurance

Government can prevent unqualified persons from operation a business by

refusing to grant them a license

If expenses are greater than income, there's no

reward

Government owns the basic means of production but there is some private ownership of businesses under

socialism

Gross profit shows business owners the difference between what they've

spent and received

Which of the following is a potential problem for market economies?

Financial Loss

In a communist command economy who decides how the economic questions will be answered?

Government

Which of the following are qualities of monopolies?

High prices and low production

Which of the following government actions is most likely to simulate the economy

Lowering tax rates

One way that competition benefits businesses is by encouraging the creation of

New companies

Why are entrepreneurs important in an enterprise membership?

They encourage the development of new products

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?

Using price supports

Why does the government set and collect taxes?

to pay the expenses of government

Each purchase strengthens the economy by encouraging

trade

Lack of economic growth is a major problem for _______ economic systems.

traditional

Contractual agreements such as guarantees, security bonds, and leases are examples of handling business risks through

transfer

Management decides to hold its annual meeting in one US city rather than another because of crime in that city. This is an example of ___________ the risk.

avoiding the risk

Carefully selecting goods or services to sell is an example of handling business risks by ______ the risk.

controlling the risk

One way that the competition helps to build a prosperous society is by

creating new jobs

Changes in the market that cause prices to go up or down, products to change, and businesses to succeed or fail are examples of _______ risks.

economic risks

The way in which an economic system answers the basic economic questions depends upon the country's

government

Offering high quality, large assortments and, free shipping are examples of

nonprice competition

One of the freedoms provided to individuals by the private enterprise system is the freedom to choose

where they will work

Most businesses put their greatest competitive efforts into competing

with direct competitors