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1.Chris orders a salad at a restaurant. What is the BEST definition of what he is buying?
a Chris is buying neither a good nor a service. b Chris is buying a service. c Chris is buying a good. d Chris is buying a service, but not a good. e Chris is buying both a good and a service.2.Nina's furniture store has had a successful year and made a significant profit. Which of the following actions using Nina's store profits would BEST increase productivity?
a Create an emergency fund. b Hire more staff. c Service her community through social and educational means. d Pay for utilities and inventory in advance. e Develop a website that would enable customers to place orders online.
3.The various resources used to create a company's goods and services are collectively referred to as ________. a supplies b factors of production c intellectual property d raw materials e inventory4.Which of the following is an example of real capital? a natural gas b personal savings c computer software d a business loan e a manufacturing plant5.The economy of the United States is ________. a noncompetitive b market-based c government-owned d socialistic e not-for-profit6.Leroy owns a small hardware store that is known for its high level of customer service. A large chain home improvement store has just opened up in his community. Which of the following would BEST help Leroy deal with his new competitor? a Move his store in order to be farther away from the large store. b Raise their prices, to show that their customer service is worth paying a premium for. c Pay his employees "under the table" to avoid costly payroll taxes and keep prices lower. d Advertise aggressively to increase consumer awareness of his reputation for service. e Close the business, since small stores cannot compete effectively with chain stores.7.atricia owns a small electronics store in a rural area. She carries two different brands of weather radios that are equally priced. One model is selling well, but the other does not seem to be attracting customers. What should Patricia do? a Try to discourage customers from buying the model that is selling well. b Donate the poorly selling radios to local schools. c Reduce the price of the model that is not selling well. d Stop advertising the radio that is not selling well. e See if a rival electronics store will purchase the poorly selling radios.
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