True or False. Mark "A" if the statement is True or "B" if it is False
1.  People who work to produce goods and services are part of the labor force. / a. True / b. False
2.  The use of technology has greatly expanded the need of human labor in the 21st century global economy. B / a. True / b. False
3.  In a capitalist system, scarcity is not a factor because the demand is determined in a free market system. B / a. True / b. False
4.  Mass production has increased the standard of living in the United States of America. A / a. True / b. False
5.  The lowest level of the business cycle is the recession level. B / a. True / b. False
6.  Start up capital may come from the owner’s personal funds, banks or other financial institutions, or private investors. A / a. True / b. False
7.  The articles of partnership will state how the profits of a corporation will be divided among its stockholders. B / a. True / b. False
8.  Coal is an example of both a natural resource and a non-renewable resource. A / a. True / b. False
9.  Electronic components manufactured in Thailand and shipped to the United States for sale are an example of an export to the United States. B / a. True / b. False
10.  A local water authority that provided water for the entire community is a public utility. A / a. True / b. False
11.  People 16 years and older who are employed or looking for a job make up the work force of the United States. B / a. True / b. False
12.  Your personal value system should not be considered when applying for a job. B / a. True / b. False
13.  There has been a dramatic decrease in the number of skills employers now require because of the great advancements made in technology. B / a. True / b. False
14.  A window display in a local mall promoting the 2002 Winter Olympics is an example of an effective sales strategy. B / a. True / b. False
15.  Checks issued by members of a credit union are called sharedrafts. A / a. True / b. False
16.  A cancelled check is written notice from the drawer telling the bank not to pay a certain check. B / a. True / b. False
17.  Outstanding checks are subtracted from the checkbook when you are performing bank reconciliation. B / a. True / b. False
18.  The maximum interest rate a credit card company may charge is 18% APR. B / a. True / b. False
19.  Treasury bonds are short-term investments that produce high yield returns. B / a. True / b. False
20.  A sound business plan will aid beginning entrepreneurs to obtain required capital. B / a. True / b. False
Mark the correct answer on your scantron sheet for each of the following questions.
21.  A lawyer is an example of a(n) / a. economic forecaster. / b. human resources provider. / c. business cycle component. / d. service provider.
22.  The United States of America is based on a / a. custom based economy. / b. directed economy. / c. planned economy. / d. market economy.
23.  A share of MKL stock that opened at 8 ¼ and closed at 9 ½ will have a value of _____ at the end of the day? / a. $ 1.50 / b. $ 8.25 / c. $ 9.50 / d. $17.75
24.  The quantity of a product or service that consumers are willing to buy is / a. supply. / b. inventory. / c. demand. / d. GDP.
25.  The total value of all final goods and services produced in a country in one year measures a nation’s / a. GDP. / b. Net Assets. / c. Gross Income. / d. TPV.
26.  If the interest on a loan for one year was $480 and the rate was 12%, the principal would be / a. $ 96.00. / b. $ 517.00. / c. $3,500.00. / d. $4,000.00.
27.  A partnership / a. requires a charter. / b. has unlimited liability. / c. requires equal division of profits. / d. has limited liability.
28.  Taxes placed on coffee imported from Brazil would be an example of a / a. surcharge. / b. FICA tax. / c. Tariff. / d. Regressive tax.
29.  Employees who earn an hourly amount of money are paid / a. straight time. / b. wages. / c. salary. / d. overtime.
30.  A United States Department of Labor Publication that researches thousands of jobs is / a. National Job Links. / b. Barron’s Quarterly. / c. Occupation Outlook Handbook. / d. Bureau of Labor Statistics.
31.  Observing a person at work to gain career insight is an example of a(n) / a. internship. / b. job shadowing experience. / c. cooperative education. / d. interactive education.
32.  A lumber company that buys rough cut lumber and cures the lumber to sell to lumber yards in the local area is an example of a(n) / a. extractor. / b. manufacturer. / c. processor. / d. producer.
33.  A keyboarding test during an interview is an example of a(n) / a. civil service test. / b. ability test. / c. cogitative test. / d. aptitude test.
34.  Wal-Mart is an example of a / a. producer. / b. wholesaler. / c. retailer. / d. specialty store.
35.  The government agency set up to help small business is the / a. FDA. / b. FTC. / c . ABA. / d. SBA.
36.  USDA “Choice” beef, indicating the quality of the beef, is an example of a / a. grade. / b. cut. / c. label. / d. type.
37.  The changes in the average price of goods and services bought by the consumer over a period of time is shown in the / a. inflation. / b. net worth. / c. GDP. / d. CPI.
38.  Mark was reconciling his bank statement. Mark’s checkbook showed a balance of $400.00. The bank showed a balance of $480.00. Mark realized that check number 412 for $60.00 and check number 418 for $20.00 was outstanding. What was the reconciled balance? / a. $320.00 / b. $400.00 / c. $480.00 / d. $560.00
39.  A financial institution that specializes in savings accounts and loans for home mortgages is a(n) / a. commercial bank. / b. savings and loan association. / c. consumer finance company. / d. investment company.
40.  An organization designed to supervise and regulate member banks is / a. a trust company. / b. the Better Business Bureau. / c. the FDIC. / d. the Federal Reserve.
41.  To make sure that no one except the party indicated will be able to cash a check, the drawer should use A / a. a full endorsement. / b. a blank endorsement. / c. no endorsement. / d. a sealed endorsement.
42.  The amount of debt to which the interest rate is applied when borrowing money is the / a. installment loan. / b. capital. / c. asset. / d. principal.
43.  Interest that is computed on the amount saved plus the interest previously earned is / a. simple interest. / b. compound interest. / c. annual percentage. / d. annual yield.
44.  The amount of money the policy holder must pay for an automobile insurance policy is the / a. deductible. / b. co-insurance. / c. share option. / d. premium.
45.  The telephone bill would be an example of a / a. capital expense. / b. fixed expense. / c. variable expense. / d. tax exempt expense.
46.  If the automobile industry enters a recession, related businesses will be affected. This is an example of / a. spin-off. / b. entry depression. / c. a business cycle. / d. the ripple effect.
47.  The only direct channel of distribution is / a. producer to consumer. / b. producer to retailer to consumer. / c. retailer to consumer. / d. producer to wholesaler to retailer to consumer.
48.  Shareholders of a corporation enjoy the advantage of / a. guaranteed profit. / b. no federal supervision. / c. limited liability. / d. rising p/e ratios.
49.  A favorable balance of trade is achieved if / a. exports exceed imports. / b. imports exceed exports. / c. tariffs equal exports. / d. tariffs exceed exports.
50.  Tom agrees to buy hay from Bob for $2.00 per bale. This is an example of a / a. contract. / b. consent. / c. bartering. / d. production sales.
51.  People 16 years of age or older who have, or are seeking a job, comprise the / a. production sector. / b. work force. / c. service sector. / d. occupational grouping.
52.  A letter of application should do all the following except / a. attract the employer’s attention. / b. cite personal achievement. / c. be courteous. / d. demand an interview.
53.  A computer company that has been in operation for less than three years and has no employees other than the owner is best described as a / a. corporation. / b. 401K. / c. venture business. / d. resources sector business.
54.  The process of starting, organizing, managing, and assuming the responsibilities for a business is / a. risk management. / b. financial management. / c. entrepreneurship. / d. marketing.
55.  An organization developed to self-regulate and improve credibility of businesses throughout the country is the / a. Small Business Administration. / b. Food and Drug Administration. / c. Federal Trade Commission. / d. Better Business Bureau.
56.  An automobile salesperson who sells a car to a customer, knowing that the odometer has been turned back 20,000 miles, has committed / a. conspiracy. / b. theft of services. / c. fraud. / d. willful omission.
57.  A federal agency that insures all accounts in the same name at each bank is the / a. FDIC. / b. ABA. / c. NYSE. / d. NCUA.
58.  When an investment can be turned into money quickly, the investment is said to be / a. volatile. / b. usurious. / c. liquid. / d. fixed.
59.  The form that a person completes when he/she opens a checking account containing type of account, legal signature, and personal client information is a(n) / a. signature card. / b. deposit slip. / c. bank statement. / d. endorsement.
60.  A monthly report a bank sends to its customers on the status of their checking account is a(n) / a. EFT. / b. adjusted net income statement. / c. bank reconciliation. / d. bank statement.
61.  Property permanently attached to the land such as a house or garage is a / a. capital expenditure. / b. community property. / c. real property / d. personal property.
62.  The concept of unlimited wants and limited resources is / a. scarcity. / b. profit. / c. net worth. / d. gross national product.
63.  When supply decreases and demand increases, the price of a good / a. creates a loss. / b. stabilizes. / c. lowers. / d. rises.
64.  A sustained decrease in the general level of prices is / a. inflation. / b. deflation. / c. recovery. / d. depression.
65.  The part of the profit a stockholder receives from a corporation is a / a. gross profit. / b. net profit. / c. tax-sheltered annuity. / d. dividend.
66.  The BTC Corporation sponsors a little league team. This is an example of / a. social responsibility. / b. integration. / c. corporate demographics. / d. tax-deferred options.
67.  Musical artists can protect their lyrics and music with a / a. patent. / b. copyright. / c. trademark. / d. license.
68.  Lanard Industries produces a line of hunter green kitchen supplies because it is this year’s hot color. This is an example of / a. derived demand. / b. implied demand. / c. imperative demand. / d. cyclical demand.
69.  A document enclosed with a letter of application summarizing important job related information is a / a. brief. / b. resume. / c. work log. / d. summary.
70.  New employees should do all the following except / a. ask questions. / b. complete tasks well and on time. / c. dress more casually than your co-workers. / d. be friendly to everyone.
71.  A situation that occurs when a business is discontinued with a loss to at least one creditor is a / a. closing. / b. bankruptcy. / c. sheriff sale. / d. liquidation.
72.  A product testing organization best known for testing electrical components is / a. Association of Home Appliance Manufacturers. / b. Underwriters Laboratories. / c. Bristol Laboratory. / d. Dell Associates.
73.  Buying a product without much prior thought is / a. impulse buying. / b. convenience buying. / c. immediate possession. / d. direct buying.
74.  Fitness equipment available for use in a fitness club which should be in sound working order is an example of a(n) / a. express warranty. / b. guarantee. / c. implied warranty. / d. contract.
75.  An endorsement that consists of only the endorser’s name is a ______endorsement? / a. restrictive / b. special / c. full / d. blank
76.  The person who issues a check is the / a. maker. / b. drawer. / c. drawee. / d. payee.
77.  Credit has many benefits and drawbacks. Which item listed below is a drawback of credit. / a. Convenience / b. Overbuying / c. Immediate possession / d. Increased credit limits
78.  Rent is an example of a(n) ______expense? / a. asset / b. capital / c. variable / d. fixed
79.  Competition will / a. create profit. / b. weaken consumer confidence. / c. lower the price of a good. / d. raise the price of consumer goods.
80.  Mass production / a. raises the standard of living. / b. lowers the standard of living. / c. creates guaranteed profit. / d. raises taxes.
81.  A group of dairy farmers who ship their milk to their own bottling plant is an example of a / a. cooperative. / b. sole proprietorship. / c. public corporation. / d. partnership.
82.  Which of the following countries is not included in the NAFTA treaty? / a. Canada / b. France / c. Mexico / d. United States
83.  A phase of the business cycle when most people who want to work are working and businesses produce goods and services in record number is / a. depression. / b. prosperity. / c. bull market. / d. recovery.