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CH01
1. What are profits?
A. total money taken in by a corporation
B. difference between revenues and expenses
C. increases in a corporations stock price
D. increases in income from year to year
E. none of the above
2. A(n) ____ is a nation’s basis for allocating its resources among its citizens.
A. capital structure
B. economic system
C. distribution network
D. ownership system
E. none of the above
3.The key difference between economic systems is the different ways in which they manage the
A. factors of production.
B. transportation of goods within their borders.
C. governmental rules and regulations.
D. payment of workers.
E. forests and lakes.
4. A(n) ___is an individual who accepts the risks and opportunities entailed by creating and operating a new business.
A. director
B. proprietor
C. entrepreneur
D. partner
E. officer
5.Which of the following is NOT an example of physical resources?
A. market forecasts
B. office facilities
C. computers
D. production facilities
E. land
6. A planned economy relies on a centralized government to
A. support free enterprise in every way possible.
B. control all or most factors of production.
C. encourage citizens to buy shares of stock in small corporations.
D. keep its control activities to a minimum.
E. none of the above
7. Which of the following is identified by the textbook as being a communist nation?
A. Vietnam
B. Sri Lanka
C. Indonesia
D. Malaysia
E. Iraq
8. In a(n) ___market, firms buy resources from suppliers.
A. supply
B. input
C. output
D. buyer
E. open
9. Ford Motor Company sells its cars and trucks in a(n)
A. output market
B. input market.
C. supply market.
D. selling market.
E. open market
10. Which economic system provides for the private
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