Unit 2: Quiz

 

Ivywood Country Club recently hired Spencer to find additional resources, make major decisions involving membership, and develop ideas for new swag to be sold in the pro shop. What unique skill did the club MOST likely need when they hired Spencer?

• labor talent

• entrepreneurial ability

• capital capacity

• opportunity cost

 

As Vincent gets older, he tends to look for high-paying jobs, watch for sales, and search for items and opportunities that invite happiness and fulfillment. What does Vincent’s behavior demonstrate?

• entrepreneurial ability

• the law of supply and demand

• lens of scarcity

• rational self interest

A company is giving away a free stuffed bear to promote its new store. Even if the bear is free for you, the item still cost money to make, as someone spent time, labor, and resources on it. What does this example BEST demonstrate?

• lens of scarcity

• rational self-interest

• opportunity cost

• entrepreneurial ability

What is TRUE about economic resources?

• 
  All economic resources are limited.

• Natural resources are limited, but manufactured resources are unlimited.

• 
  

  Land is always limited, but labor is not limited.

• 
  Company profit won’t be impacted by the amount of resources used.

 

From the time she was a little girl, Francine has always had a gift for running a business. She made a very profitable lemonade stand when she was 8 and started selling bracelets to her friends when she was 12. She has a business plan for a company she wants to start as soon as she graduates high school. What does Francine’s behavior demonstrate?

• lens of scarcity

• entrepreneurial ability

• the law of supply and demand

• global trade

Clyde is pursuing two clients for his consulting business. Time constraints prevent him from pursing both opportunities simultaneously. Clyde has a higher probability of landing Client A but the revenue generated would be smaller. The decision about which client to pursue is an example of which economic principle?

• rational self-interest

• trading

• opportunity cost

• scarcity

Why do MOST companies sell shares of stock?

• All companies are required to sell shares of stock.

• To let more people vote on company decisions

• To gain a better reputation.

• To generate income for the company.

What is the main reason companies offer free or promotional items and services?

• To lure in new customers willing to spend money.

• To reveal their new products to their competiton.

• To get rid of bad products.

• To show the public how wealthy the company is.

Your country takes in $350 million each year in tax money but chooses to spend $150 million on various services it provides. What type of stance does your country take on fiscal policy?

• expansionary stance

• contractionary stance

• economic stance

• neutral stance

Which statement BEST argues that stock markets can be good for society?

• Investing in the stock market requires no risk.

• The government requires all companies to participate in the stock market.

• The stock market allows individuals to invest money and create more money.

• The stock market helps people earn money without having to pay any taxes on their income.