Principle of Business September

What is bartering?

• Using coins to buy goods

• Exchanging goods and services without money

• Saving money in a bank

• Selling items in a market

Which of the following is an example of bartering?

• Paying $5 for bread

• Exchanging rice for fish

• Buying clothes with a credit card

• Saving coins in a jar

Which of the following is the most important function of money?

• Store of value

• Medium of exchange

• Standard of deferred payment

• Unit of account

When money is used to measure and compare the value of goods and services, it is acting as:

• A store of value

• A unit of account

• A medium of exchange

• A standard of deferred payment

What is the public sector?

• Businesses owned by private individuals

• The part of the economy owned and controlled by the government

• Shops and markets run for profit

• Banks run by private companies

Which of the following is an example of a public sector service?

• Clothing store

• Supermarket

• Government hospital

• Government hospital

What is the main goal of the private sector?

• To provide free services

• To make a profit

• To provide public goods

• To serve all citizens equally

Which of the following is a private sector business?

• Post office

• Public school

• Supermarket

• Police service

What is privatization?

• When private companies are given to the government

• When businesses or services move from public to private ownership

• When money is printed by the central bank

• When taxes are reduced

Which of the following is a possible advantage of privatization?

• Goods and services may become free

• Businesses may become more efficient

• The government provides more jobs

• Essential services are guaranteed for all citizens