Module 5 Practice Quiz (Geo)

Which of these is the main incentive for people to start a business?

• Profit

• Opportunity Costs

• Scarcity

• Labor

raw materials needed to produce goods

• natural resources

• financial capital

• capital

• labor

human time, effort, skills, and talent needed to produce goods

• natural resources

• financial capital

• capital

• labor

money that a business uses to buy the items needed for the business to function

• natural resources

• financial capital

• capital

• labor

items such as tools, machines, factories, and office equipment needed for a business to function

• natural resources

• financial capital

• capital

• labor

Which of the following scenarios accurately illustrates the concept of economic interdependence?

• An entrepreneur decides to open a bakery and produces bread for the neighborhood.

• Good rainfall allows a farmer to produce more strawberries and he chooses to expand his business.

• Japan lacks iron to make steel, so Japan enters into a trading relationship with Australia and Brazil, who supply Japan with iron ore.

• South Africa is rich in diamonds, gold, and mineral resources, so South Africa creates a mining industry that produces much wealth.

A farmer sells milk produced from dairy cows. This is an example of the ________ industry.

• agricultural

• retail

• manufacturing

• wholesale

A factory owner uses lumber to make furniture. This is an example of the ________ industry.

• agricultural

• retail

• manufacturing

• wholesale

A company buys vegetables from several farmers, then sells them to a grocery store. This is an example of the ________ industry.

• agricultural

• retail

• manufacturing

• wholesale

A restaurant sells food to customers. This is an example of the ________ industry.

• agricultural

• retail

• manufacturing

• wholesale