Intro to Business- Unit 3 Topic 1 Quiz Review

Jimmy lives in Illinois and grows corn and soybeans for a living. What role does he play in the economy?

• consumer

• 
  government

• 
  producer

• 
  marketer

Franco is taking a class at his local community college in which he is studying how individuals make decisions around production and consumption. What class is Franco most likely taking?

• 
  macroeconomics

• 
  accounting

• 
  finance

• 
  microeconomics

Match the following definitions and terms.

• free market

• 
  

  an economy in which the government owns most production and dictates what is produced and consumed, and the price of goods and services

• 
  

  producers

• 
  

  an economy in which the government has limited involvement in production and prices

• 
  

  command economy

• 
  

  those who create goods and services desired by others

• consumers

• 
  

  those who desire and are willing to purchase goods and services

Categorize the following as pertaining to supply or demand.

Groups:

(a) Supply

,

(b) Demand

• the amount of a good or service a seller is willing to produce or provide

• downward sloping line on supply and demand curve

• upward sloping line on supply and demand curve

• the amount of goods or services buyers desire to purchase

Which of the following can result in problems balancing supply and demand?

Select 2 correct answers.

• 
  facing problems with suppliers

• 
  having good historical sales data

• 
  failing to know who your customers are

• 
  forecasting demand accurately

Match the problem to its characteristic.

• output problem

• 
  

  high level of customer returns

• 
  

  quality problem

• 
  

  machinery breakdowns

• management problem

• 
  

  production delays that require overtime

• 
  

  cost problem

• high employee turnover

Customers have become more environmentally conscious in recent years, resulting in the demand for more recyclable products. What is this change called?

• 
  supply

• 
  quantity

• 
  trend

• 
  quality

What is the point where the supply line and demand line intersect on a supply and demand graph?

• 
  disequilibrium price

• 
  supply curve

• demand curve

• equilibrium price

What is illustrated when a demand curve moves to the right?

• 
  increase in demand

• 
  decrease in demand

• 
  decrease in supply

• 
  increase in supply