Chapter 3 Test

What is Gross National Product?

• Gross National Product is the total value of all imports and exports.
• Gross National Product is the total population of a country.
• Gross National Product (GNP) is the total value of all goods and services produced by a country during a year.

• Gross National Product measures only the domestic production of goods.

a policy that government should interfere as little as possible in the nation's economy

• Regulated capitalism
• Interventionist policy
• Laissez-faire
• Socialism

one who organizes, manages, and assumes the risk of a business or enterprise

• Entrepreneur
• Investor
• Shareholder
• Manager

What is a time zone?

• A time zone is a region with the same standard time.
• A time zone is a seasonal change in weather.
• A time zone is a measurement of distance.
• A time zone is a type of clock.

What is a land Grant?

• A land grant is a Grant of land by the federal government.

• A land grant is a loan provided for purchasing land.
• A land grant is a tax incentive for businesses.
• A land grant is a type of agricultural subsidy.

an organization that is authorized by law to carry on an activity but treated as though it were a single person

• Sole Proprietorship
• Corporation
• Nonprofit Organization
• Partnership

What is economies of scale?

• Economies of scale are the cost advantages that arise when production becomes efficient, as the scale of production increases.
• Economies of scale are the financial losses incurred when production is too high.
• Economies of scale describe the environmental impact of large-scale production.
• Economies of scale refer to the increase in product quality with higher production.

total control of a type of industry by one person or one company

• Monopoly
• Oligopoly
• Duopoly
• Cartel

What is a trust?

• A trust is a government program for social welfare.
• A trust is a form of insurance policy.
• A trust is a combination of firms or corporations formed by a legal agreement.

• A trust is a type of bank account.

What is a holding company?

• A holding company is a business that owns other companies' outstanding shares.
• A holding company is a company that manufactures products.
• A holding company is a business that only provides services.
• A holding company is a type of investment bank.