Economics Test Review #1 Question Preview (ID: 36562)


Economics Test Review #1. TEACHERS: click here for quick copy question ID numbers.

Which type of business has the highest risk but also offers the highest reward potential?
a) Franchise
b) Partnership
c) Coorporation
d) Proprietorship

If supply is low and demand is high, the price of an item will be -
a) Low
b) High
c) Stay the same
d) None of the Above

In the United States, markets are allowed to operate without undue interference from the government. This is called —
a) Profit
b) Free market
c) Consumer Sovereignty
d) Supply and Demand

Mike has $10. He can buy his favorite CD or a shirt. He decides to buy the CD. What term best represents the shirt?
a) His opportunity cost
b) His incentive
c) His supply
d) His demand

Business, individuals, and government make economic decisions in which economic system?
a) Free Market
b) Traditional
c) Command
d) Mixed

Which of the following businesses would be the lowest risk for Holly to invest money?
a) Holly and Morgan's Flower Shop
b) Coca-Cola
c) Holly's Bakery
d) Three Sisters' Cafe

If a corporation fails, the owners' liability is their -
a) Investment
b) Savings
c) Property
d) Income

In the United States economic system, who makes decisions?
a) Individuals only
b) Businesses only
c) Individuals, businesses, government
d) Government only

What is the main role of the consumer in the United States economy?
a) Determine through their purchases what will be produced
b) Buy all goods at any price
c) Make products for themselves
d) Operate the economy without undue influence

What is demand?
a) amount producers are willing to sell
b) amount of the incentive
c) amount an item costs
d) amount of goods and services people are willing to buy

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