Quiz _1 - Spring 2010

Quiz _1 - Spring 2010 - Quiz #1 Student: _ 1. In order to...

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Quiz #1 Student: ___________________________________________________________________________ 1. In order to make an intelligent investment decision, entrepreneurs should: A. limit their options to those business investments that are backed by the U.S. government. B. invest in businesses that have generated a stable rate of profit for at least the past ten years. C. invest only in business opportunities where it is possible to take an active role in management. D. compare the risks of potential investments to their expected profits and find the right balance between profit and risk. 2. Nadine has started up a new printing business. The printers, computers, and copying machines she has leased are examples of: A. natural resources. B. intangible resources. C. current assets. D. capital. 3. The amount of goods and services people can buy with the money they have is called their: A. nominal income. B. consumer price index. C. profit margin. D. standard of living. 4. ___________ means producing the desired result. A. Effectiveness B. Technology C. E-production D. Productivity 5. More efficient distribution systems around the world have led to: A. increased world trade. B. decreased world trade. C. decreased international competition. D. reduced standards of living around the world.
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6. The ___________ index is an important figure because some wages and salaries, rents and leases, tax brackets, government benefits, and interest rates are based on it. A. market price B. producer price C. wholesale price D. consumer price 7. Which of the following statements provides the most accurate comparison of socialism and communism? A. Under socialism the government owns most businesses, while under communism the church owns most businesses. B. Both socialism and communism want to achieve a more equal distribution of income and wealth, but under communism the government takes more control over people's lives. C. Socialism strives for an equal distribution of income but communism wants income to go primarily to those who own and operate private businesses. D. Communism believes that the government should always strive to balance its budget, while socialism accepts deficit spending as the price of achieving true equality. 8. Efforts by the Federal Reserve System to control the money supply and interest rates are known as: A. fiscal policy. B. incomes policy C. monetary policy D. securities policy. 9. One benefit of the rights and freedoms of capitalism is that: A. people feel safe and don't take any risks in business. B. people are willing to take more risks than they would otherwise. C. people don't have to choose where they will work. D. the prices of needed products are always very low. 10. A major benefit of socialism is assumed to be its:
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Quiz _1 - Spring 2010 - Quiz #1 Student: _ 1. In order to...

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