Chapter 1 , 2 ,3

Question 1

An organization that provides goods or services for the purpose of making a profit is called a business

Answer 1

TRUE

Question 2

The amount of business earns after deducting what it spends for rent , salaries and other expenses revenue

Answer 2

FALSE

Question 3

The primary goal of a non profit business is to use it revenues to provide a public service

Answer 3

TRUE

Question 4

In a world of scarcity , we will never meet all of society’s wants.

Answer 4

TRUE

Question 5

In a planned economy , government determines the prices of goods and services , and government also determines what goods will be produced.

Answer 5

TRUE

Question 6

Economists refer to the relationship that a higher price leads to lower quantity supplied as the law of supply.

Answer 6

FALSE

Question 7

Economists refer to the relationship that a higher price leads to a higher quantity supplied as the law of supply.

Answer 7

TRUE

Question 8

Compared to International Business, Globalization is broader.

Answer 8

TRUE

Question 9

The key drivers advancing globalization are technical , cultural and economic advances.

Answer 9

TRUE

Question 10

If your country is the single , only source of a given product , good or service , you are said to have comparative advantage.

Answer 10

FALSE

Question 11

The barter system is rarely used today because of the necessity for both parties to want something the other can provide at the same time.

Answer 11

TRUE

Question 12

If the federal government wanted to find out how much M2 money is in circulation in the US , they would look at checking accounts.

Answer 12

FALSE

Question 13

Noah owns a private company. His company does not offer shares of the company to the public.

Answer 13

TRUE