BE Modules 2.03 & 2.05 Test

The most common medium of exchange in modern economic systems is

• barter

• capital

• credit

• money

One way that competition helps build a prosperous society is by

• replacing small businesses with large ones

• creating government legislation

• creating new jobs

• increasing the money supply

Besides motivation, what does profit provide business owners in particular?

• Determination

• Satisfaction

• Energy

• Influence

A hurricane that destroys a business is an example of a(n) __________ risk.

• operational

• financial

• strategic

• hazard

What action do consumers take that determines what will be produced in a market economy?

• Apply for jobs

• Cast economic votes

• Produce products

• Comparison shop

The act of reducing or removing risks by shifting the risk factor to another person or business is referred to as __________ risk.

• retaining

• transferring

• avoiding

• controlling

Lack of economic growth is a major problem for __________ economic systems.

• traditional

• communist command

• market

• socialist command

Burger King and McDonald’s are examples of

• regulated monopolies

• unrelated businesses

• dissimilar firms

• direct competitors

Individuals and businesses own the means of production and distribution with limited government regulation in a __________ economy.

• market

• traditional

• socialist

• communist

One way that competition benefits business is by encouraging the creation of

• new companies

• more regulations

• unrelated firms

• limited resources