Quiz 1 Q&A

The relationship between sales and profits can be written as ______. A. sales revenue - expenses = profit B. expenses + loss = sales revenue + profit C. profit - expenses = sales revenue D. loss + profit = sales revenue E. sales revenue + expenses = profit

A. sales revenue - expenses = profit

The nationalization of key industries in countries such as Sweden and Norway is indicative of a(n) ____ economy. A. Nationalist B. Socialist C. Industrialized D. Communist E. Capitalist

B. Socialist

As a farmer, Charles Forsythe is familiar with the economics of perfect competition. How is the price at which he sells his corn determined? A. The price will be approximately 25% higher than what other farmers are selling their corn for. B. The price is determined by combining the actions of all buyers and sellers together. C. It is determined by Charles because he has the product that many people want. D. The price he will receive is primarily determined by the buyer at the local grain bin. E. The government sets the price of the corn to level the playing field for everyone.

B. The price is determined by combining the actions of all buyers and sellers together.

Capital or capital goods are recognized by economists would include all of the following except _____. A. money B. crude oil C. facilities D. computer equipment E. machinery

B. crude oil

All of the following would typically be considered consumer products except a _____. A. prom dress B. high-powered drill press C. DVD player D. bag of dog food E. 2-liter of Coke

B. high-powered drill press

Monopolistic competition is a market situation in which _______ . A. the same price is charged for all products B. similar but not identical products are available C. only one product is available D. several identical products are available E. the government regulates prices

B. similar but not identical products are available

Mandy Bush decides to start a residential landscaping business. How would this business most likely be classified? A. Manufacturing Business B. Marketing Intermediary C. Service Business D. Corporation E. Nonprofit Organization

C. Service Business

In a socialist economy, key industries owned by the government include all except _____. A. transportation B. banking C. food production

C. food production

A former Air Force pilot decides to operate a helicopter tour company to provide customers with breathtaking views of the Rockey Mountains. He obtains and purchases the necessary land, facilities, advertising. and five helicopters for his business. What important factor of production has he overlooked in creating his business? A. natural resources B. entrepreneurship C. equipment D. labor E. capital

D. labor

Tim Hughes works at an institutional bakery and is paid a wage dictated by the government. He does not like his job but is not allowed other options. Tim must purchase necessities for his family at fixed prices. The country Tim lives in can be described as a _____ economy. A. Market B. Demand C. Free-enterprise D. Capitalist E. Command

E. Command