Understanding Profit Motive

Understanding Profit Motive

Assessment

Interactive Video

Business, Social Studies

7th - 10th Grade

Hard

Created by

Lucas Foster

FREE Resource

The video explores the concept of profit, focusing on the profit motive, which drives individuals and firms to make money. It discusses how businesses can maximize profit by increasing revenue or decreasing costs. The impact of the profit motive on producers, consumers, workers, and the economy is examined, highlighting both benefits and potential drawbacks. The video concludes with a preview of future lessons on cost analysis.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary reason people sell goods or services?

To gain personal satisfaction

To make a profit

To follow a passion

To contribute to the community

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula for calculating profit?

Cost minus revenue

Revenue minus cost

Revenue times cost

Revenue plus cost

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a way to increase revenue?

Lowering wages

Attracting new customers

Finding cheaper production factors

Reducing waste

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How can innovation benefit consumers?

By reducing product variety

By creating better products

By increasing product prices

By limiting market competition

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential benefit for workers when businesses are profitable?

Higher unemployment

Lower wages

Employment stability

Fewer job opportunities

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential negative practice some producers might use to increase profits?

Increasing employee benefits

Improving product quality

Using misleading marketing

Offering fair wages

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might the profit motive not encourage the production of certain medicines?

The market is too small

The production cost is low

The market is too large

The demand is too high

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