True False

Question 1

T/F When a nation byes more goods from other nations than it sells to them, that nation has a favorable balance of trade

Answer 1

False

Question 2

T/F Eastern European nations pioneered the economic philosophy of mercantilism

Answer 2

False

Question 3

T/F with capitalism, the government generally has more control over the individual business owners

Answer 3

False

Question 4

T/F public goods are usually provided by government because business firms could not supply them and make a profit

Answer 4

True

Question 5

T/F Donald trump is a socialist

Answer 5

False

Question 6

T/F exploration is not one of the 5 points of mercantilism

Answer 6

False

Question 7

T/F the full title of Adam Smith’s landmark economic treaties is: “an inquiry into the nature and cause of nations”

Answer 7

False

Question 8

T/F according to the classical definition, liberalism does not equal Liberty

Answer 8

False

Question 9

T/F one of the three functions of government according to Adam smith is “to protect its citizens from foreign invasion”

Answer 9

True

Question 10

T/F because it denies the legitimacy of government, radical capitalism is approved by scripture

Answer 10

False

Question 11

T/F a partnership is a business enterprise with two or more persons as the owner

Answer 11

True

Question 12

T/F A limited partner holds all management responsibilities and makes all business decisions

Answer 12

False

Question 13

T/F a corporation is not a separate entity recognized by law

Answer 13

False

Question 14

T/F surety is the act of becoming security for or pledging to undertake another debt

Answer 14

True

Question 15

T/F A business firm with one owner is called a sole proprietorship

Answer 15

True

Question 16

T/F two of the advantages of a partnership are greater management skills and greater possibilities of keeping competent employees

Answer 16

True

Question 17

T/F two disadvantage of a sole proprietorship are unlimited personal financial liability and limited life

Answer 17

True

Question 18

T/F scripture warns agents becoming surety for another’s debts

Answer 18

True

Question 19

T/F two of the disadvantages of incorporation are lower taxes and less government regulation

Answer 19

False

Question 20

T/F corporations are the most common form of business original in the U.S

Answer 20

False

Question 21

T/F the S&P 500 is intended to give a broad perspective on business in the U.S.

Answer 21

True

Question 22

T/F those who actively buy and sell stocks for the purpose of taking advantage of short term price changes are engaging in speculation

Answer 22

True

Question 23

T/F when stock prices rise in an industry or across the entire market simply because of expectations and they rise in excess of the corporations true value, it’s called a speculative bubble

Answer 23

True

Question 24

T/F a group of stocks which are organized to help identify trends in certain industries are called stock indexes

Answer 24

False

Question 25

T/F a group of stocks which are organized to help identify trends in certain industries are called stock indexes

Answer 25

False

Question 26

T/F an IPO is known as an initial private offerings

Answer 26

False

Question 27

T/F the NASDAQ is the largest stock exchange in the US that has no trading floor

Answer 27

True

Question 28

T/F the S&P 500 tracks industrial production along with other type of industries

Answer 28

True

Question 29

T/F “buy high, sell low”

Answer 29

False

Question 30

T/F stock exchanges originated in Ireland and Belgium

Answer 30

False

Question 31

T/F the first stock exchange in the US developed in Philadelphia in 1790

Answer 31

True

Question 32

T/F a loose oligopoly is one in witch the bottom four firms account for 50-75% of industry total sales

Answer 32

False

Question 33

T/F an oligopoly composed of more than two business is called a duopoly

Answer 33

False

Question 34

T/F collision is when companies agree to not work together

Answer 34

False

Question 35

T/F perfect competition exists when there are many producers selling identical products

Answer 35

True