Unit 2 Test

Question 1

Which group of players provides all goods and services in the game of economics?

Answer 1

Producers

Question 2

Which describes the effect of the purchases that consumers make?

Answer 2

indicate their desires to producers

Question 3

Which group of players in the game of economics both produces and uses goods and services?

Answer 3

Workers

Question 4

Which group of players uses the goods and services produced in the game of economics?

Answer 4

Consumers

Question 5

Which best explains the purpose of market research?

Answer 5

Market research helps producers earn more profits.

Question 6

Which consumer influence is represented by the action of buying an item because everyone else is doing it?

Answer 6

trend

Question 7

Which is an example of an action that is part of making a rational choice?

Answer 7

doing a cost-benefit analysis

Question 8

Which is a budget used for?

Answer 8

planning income and expenses

Question 9

Which term refers to the personal satisfaction someone gets from consuming goods and services?

Answer 9

Utility

Question 10

Which best describes discretionary spending?

Answer 10

buying goods according to what one want or needs

Question 11

Which best explains why some people get life insurance and others don’t?

Answer 11

Different people are willing to face different kinds of risks.

Question 12

Which is a way that the media influences consumer behavior?

Answer 12

product placement

Question 13

Which does the news media do?

Answer 13

Provide Information

Question 14

Which is determined by subtracting costs from revenue?

Answer 14

Profits

Question 15

Which most strongly drives producers in a free-market economy?

Answer 15

Profit Motive

Question 16

Which best states the main difference between a monopoly and monopolistic competition?

Answer 16

Monopolistic competition involves slightly differentiated products while monopoly involves a single product.

Question 17

Which method do media companies use to make revenue?

Answer 17

selling ads and subscriptions

Question 18

Which best describes the purpose of advertising?

Answer 18

transmit product messages to an audience

Question 19

Which best explains why the media industry is characterized by an oligopolistic market structure?

Answer 19

Centralization of ownership has led to an industry controlled by a few large companies.

Question 20

Which is a characteristic of general partnerships but not limited partnerships?

Answer 20

unlimited liability for all partners

Question 21

Which type of business is owned by stockholders?

Answer 21

public corporation

Question 22

Which is an advantage corporations enjoy over partnerships?

Answer 22

The owners of a corporation don’t have to work together to make all of the business decisions.

Question 23

Which type of business is most likely to use the bricks-and-clicks business model?

Answer 23

clothing sellers

Question 24

Which generates revenue for Google?

Answer 24

sale of advertisements

Question 25

Which best demonstrates how successful Google has been at establishing a well-known brand?

Answer 25

The word google has been added to dictionaries.