Business Mgt EOY Review 2

Which of the following best describes economic goods?

• Goods that are free for everyone

• Goods that are scarce and have a price attached

• Goods that are unlimited in supply

• Goods that are not useful to society

What is a key component of economic activities?

• Social media engagement

• Innovation and creativity

• Production, distribution, exchange, and consumption

• Political activism

Which type of economic resource refers to the physical and mental effort people use to produce goods and services?

• Natural resources

• Human resources

• Financial resources

• Capital resources

What is a characteristic of a traditional economic system?

• Government control of resources and production

• Decisions based on customs, traditions, and rituals

• Private ownership of resources and production

• Market forces determine resource allocation

How does entrepreneurship impact market economies?

• It leads to decreased competition

• It fosters innovation, creates jobs, and drives economic growth

• It increases government intervention

• It discourages small business development

What is the difference between gross and net profit?

• Gross profit includes all expenses, while net profit excludes taxes

• Gross profit is the total revenue, while net profit accounts for all expenses

• Gross profit is before expenses, while net profit is after expenses

• Gross profit considers taxes, while net profit does not

Which of the following is an example of a noncontrollable expense for a business?

• Employee salaries

• Utility bills

• Marketing expenses

• Taxes

What is the primary role of the Federal Reserve System?

• Setting tax rates

• Regulating the money supply and interest rates

• Controlling government spending

• Managing international trade agreements

Which market structure is characterized by a large number of firms competing with similar products?

• Monopoly

• Perfect competition

• Oligopoly

• Monopolistic competition

What phase of the business cycle is characterized by declining economic activity?

• Expansion

• Peak

• Contraction

• Trough