Introduction to Business

The barter system is the exchange of goods and cash.

• True

• False

There are no problems faced when people are using the barter system.

• True

• False

When Trinidad exchanges its oil for cement from Jamaica, the form of trade is best described as

• regional trade

• barter

• transaction

• international trade

An advantage of Barter is

• you can use money

• more goods can be acquired

• it is flexible in trading goods or services

• it is a quick process of trade

Subsistence economy involves

• paying for goods of only high quality

• Accumulating wealth

• Producing goods and service only for survival

• investing for future goals

Easily transferred from one person to another, to make the exchange of money for goods/services easier

• Durability

• Divisibility

• Portability

• Scarcity

Money has what if it doesn't deteriorate when it is being handled?

• Scarcity

• Divisibility

• Durability

• Portability

This can be used in place of money.

• Fiat money

• Cash

• National currency

• Trading or bartering

Ivan works in a government owned car factory because this was the job he was assigned. Every day he works hard to meet production goals set by his leaders. He his happy to do the work because he knows he is doing his part to keep his government strong and powerful.

In which type of economy does Ivan work?

• Command

• Market

• Traditional

• Mixed

Steve started a technology company because he noticed people really like new technology. At first Steve decided to make cell phones. Then he noticed that man people were buying tablets as well. Steve realized he could make even more profit if he manufactured tablets and cell phones. Now Steve runs an even more profitable company. The government does NOT tell Steve what to do, and because of this he pays his employees as little as possible and does not have health care benefits.

What type of economic system does Steve participate in?

• Traditional

• Market

• Mixed

• Command