Quiz 11

In the video about entrepreneurship, why was the owner of Clean & Mean able to craft her work schedule in a way that allowed her to go to the mall with her mom on Friday mornings?

Because of the level of independence offered by entrepreneurship.

Which of the following are disadvantages of sole proprietorships? (choose all that apply)

Their owners usually have limited financial resources.

Why do politicians often establish trade barriers even though the barriers usually do more harm than good?

They are incentivized to create policies that disperse costs over a large number of people but benefit small, powerful groups.

Which of the following are disadvantages of corporations? (choose all that apply)

They are more complicated and expensive to establish than other business structures. Their owners are subjected to double taxation.

If Country A can produce wheat at a lower cost than Country B, then Country A has a(n) ____________ advantage in wheat production.

absolute

Entrepreneurs develop new products and start new businesses by ________________.

bringing natural, human, and capital resources together

If Country A can produce wheat at a lower opportunity cost than Country B, then Country A has a(n) ___________ advantage in wheat production.

comparative

Which of the following is an example of a cooperative?

credit union

When a nation imports more goods than it exports, it has a trade ________.

deficit

Foreign goods are goods that were made in other countries, and _________ goods are goods that were made in your own country.

domestic

A business owned by an entrepreneur that is licensed to sell products under the name of a larger corporation is called a ____________.

franchise

Which of the following can discourage the creation of new businesses?

high tax rates

Which of the following are challenges for entrepreneurs? (choose all that apply)

high time commitment high financial commitment high levels of stress

Foreign products bought from sellers in other nations are called ________.

imports

Which of the following are effects of the expansion of trade? (choose all that apply)

increases competition, which lowers prices and improves quality increases the variety of products available for consumers to purchase

A business with two or more owners is called a _____________.

partnership

Which of the following are incentives for entrepreneurs? (choose all that apply)

profit helping others

When a nation exports more goods than it imports, it has a trade ________.

surplus

Which of the following is the most common trade barrier?

tariff

Which of the following factors impact how much trade takes place between two countries? (choose all that apply)

the exchange rate between their currencies the countries' willingness to encourage or discourage trade the political climate in each country the size of each country transportation costs each country's capacity to produce goods