POB

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POB

• Objective 1

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1. Depression is BEST defined as

• A A phase in the business cycle that is marked
  by an extended period of high unemployment, a
  decline in the sales of goods and services, and
  business failures.
• B A period in the business cycle where demand
  begins to decrease.
• C A period in the business cycle where demand
  begins to increase.
• D The peak of the business cycle, where the
  demand for goods and services is high.

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A A phase in the business cycle that is marked
by an extended period of high unemployment, a
decline in the sales of goods and services, and
business failures.
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2. Entrepreneurial resources are BEST described
as

• A An initiative to combine natural, human and
  capital resources to produce goods or services.
• B People who contribute physical and mental
  energy to the production process.
• C Raw materials from the earth, water or air
  used to produce goods.
• D Tools, equipment and buildings used to
  produce goods and services.

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A An initiative to combine natural, human and
capital resources to produce goods or services.
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3. Human resources are BEST described as

• A An initiative to combine natural, human and
  capital resources to produce goods or services.
• B People who contribute physical and mental
  energy to the production process.
• C Raw materials from the earth, water or air
  used to produce goods.
• D Tools, equipment and buildings used to
  produce goods and services.

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B People who contribute physical and mental
energy to the production process.
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4. The business cycle is BEST defined as

• A An increase in the cost of goods and
  services.
• B A period in the business cycle where demand
  begins to decrease.
• C Movement of an economy from one condition to
  another.
• D Changes in the average prices of goods and
  services purchased by consumers over a period of
  time.

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C Movement of an economy from one condition to
another.
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5. A phase in the business cycle that is marked
by an extended period of high unemployment, a
decline in the sales of goods and services, and
business failures is called

• A Depression.
• B Prosperity.
• C Recession.
• D Recovery.

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A Depression.
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6. An economic system in which the government
owns major industries but allows private
ownership of other businesses is called

• A Capitalism
• B Communism
• C Socialism
• D Traditionalism

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C Socialism
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7. Desirable beliefs and principles are called

• A Decisions.
• B Goals.
• C Resources.
• D Values.

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D Values.
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8. The initiative to combine natural, human and
capital resources to produce goods or services is
an example of what kind of resources?

• A Capital
• B Entrepreneurial
• C Human
• D Natural

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B Entrepreneurial
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9. Businesses that change natural materials (raw
goods) into a more finished form for
manufacturers to process further are called

• A Distributors.
• B Manufacturers.
• C Processors.
• D Retailers.

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C Processors.
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10. A written contract granting permission to
sell someone else's product or service in a
particular manner is called a

• A Corporation.
• B Franchise.
• C Partnership.
• D Sole proprietorship.

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B Franchise.
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11. Changes in the average prices of goods and
services purchased by consumers over a period of
time are shown in

• A Consumer Price Index.
• B Gross Domestic Product.
• C Unemployment figures.
• D Standard of living charts.

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A Consumer Price Index.
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12. People who contribute physical and mental
energy to the production process are called

• A Capital resources.
• B Entrepreneurial resources.
• C Human resources.
• D Natural resources.

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C Human resources.
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13. An economy in which people do things the way
they have always been done is called

• A Capitalism
• B Communism
• C Socialism
• D Traditionalism

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D Traditionalism
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14. Susan set a goal to make 95 on her accounting
exam. What kind of goal is this?

• A Short-term
• B Intermediate
• C Long-term
• D Lifetime

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A Short-term
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15. A person who purchases and uses goods and
services is called a

• A Citizen.
• B Consumer.
• C Seller.
• D Worker.

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B Consumer.
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16. A measure of how well people in a country
live is called

• A Inflation.
• B Opportunity cost.
• C Productivity.
• D Standard of living.

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D Standard of living.
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17. In a free enterprise system, voting is a
responsibility of an individual's role as a

• A Citizen.
• B Processor.
• C Seller.
• D Worker.

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A Citizen.
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18. The greatest proportion of consumer income is
spent on

• A Clothing.
• B Food.
• C Shelter.
• D Entertainment.

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C Shelter.
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19. Paper mills, oil refineries, steel mills and
flour mills are examples of what type of
business?

• A Distributors
• B Manufacturers
• C Processors
• D Service firms

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C Processors
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20. A business that sells directly to the
consumer is called a

• A Manufacturer
• B Producer.
• C Retailer.
• D Wholesaler.

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C Retailer.
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21. A business owned and managed by two or more
people is called a

• A Corporation.
• B Franchise.
• C Partnership.
• D Sole proprietorship.

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C Partnership.
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22. The peak of the business cycle where the
demand for goods and services is high is

• A Depression.
• B Prosperity.
• C Recession.
• D Recovery.

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B Prosperity.
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23. What would NOT help a company increase
profits?

• A Increase sales (exposure)
• B Increase price
• C Decrease costs
• D Decrease price

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D Decrease price
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24. A company's profit is determined by sales

• A Minus expenses.
• B Plus expenses.
• C Minus taxes paid.
• D Plus taxes paid

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A Minus expenses.
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25. Which is NOT an example of a processor?

• A Furniture store
• B Paper mill
• C Oil refinery
• D Steel mill

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A Furniture store