Quiz 1

1/ Which key aspect differentiates a country's standard of living from its overall wealth?

• • A high standard of living always indicates high wealth.

• • Wealth measures total resources, while standard of living looks at goods and services affordability.

• • Wealth directly measures political stability.

• • Standard of living measures wealth disparities.

2/ Which is NOT a benefit of a technological environment to workers and businesses?

• • Efficient use of resources in producing goods.

• • Greater productivity per input.

• • Increased manual labour reliance.

• • Improved customer service response time.

3/ What role does the technological environment play in modern businesses?

• • It promotes economic growth by reducing competition.

• • It increases productivity and efficiency through tools like databases and software.

• • It limits the global reach of companies by restricting communication.

• • It makes manual labour more efficient.

4/ Which environmental factor most directly affects a company's ability to compete globally?

• • Social environment.

• • Economic and legal environment.

• • Technological environment.

• • Demographic changes.

5/ What is the primary distinction between goods and services in a business context?

• • Goods are only produced in manufacturing industries.

• • Services generate higher profits than goods.

• • Goods are more expensive than services.

• • Goods are tangible, while services are intangible.

6/ What does "empowerment" in a business environment involve?

• • Replacing senior management with junior staff.

• • Providing frontline workers with decision-making authority and necessary tools.

• • Increasing employee working hours to boost productivity.

• • Outsourcing key decision-making to third-party consultants.

7/ Which factor is considered a key risk that an entrepreneur faces?

• • High employee turnover.

• • Unavailability of goods and services.

• • Loss of time and money on an unprofitable venture.

• • Declining standard of living.

8/ Why are retired people viewed as a potential economic drain?

• • They stop purchasing goods and services.

• • They contribute to lower GDP growth.

• • They draw on social security without generating new wealth.

• • They tend to invest less in businesses.

9/ How do businesses contribute to the improvement of quality of life in society?

• • By increasing profit margins.

• • By investing in foreign markets.

• • By collaborating with government agencies and nonprofits to provide goods and services.

• • By paying more taxes.

10/ Which of the following is NOT one of the five factors of production?

• • Capital

• • Knowledge

• • Entrepreneurship

• • Profit