Intro to Business Chapter

If a news headline says, "Finally!!! 3 straight months of increased jobs and positive consumer confidence,"
which period on the business cycle is being reference?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "After 6 straight years of growth, is the economy at a TURNING POINT?"

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "3 months of consecutive job losses is negatively impacting consumer confidence,"

what period on the business cycle is being referenced?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

What is the primary purpose of a business in a market economy?

• To provide goods and services

• To create jobs

• To pay taxes

• To support charities

Which of the following is a characteristic of a sole proprietorship?

• Limited liability

• Owned by shareholders

• Single owner

• Double taxation

What is the role of competition in a free market economy?

• To increase prices

• To limit consumer choice

• To drive innovation and efficiency

• To reduce quality

Which economic system is characterized by government ownership of resources?

• Capitalism

• Socialism

• Feudalism

• Mercantilism

What is a key feature of a corporation?

• Unlimited liability

• Single taxation

• Legal entity separate from owners

• Owned by one person

Which of the following best describes a mixed economy?

• An economy with no government intervention

• An economy with only private businesses

• An economy with both private and public sector involvement

• An economy controlled entirely by the government

What is the main advantage of a partnership over a sole proprietorship?

• Limited liability

• Shared decision-making and resources

• Double taxation

• Easier to raise capital