The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Principles of economics for small businesses.
The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Financing a business start-up (IENT103) micro-course. Please consult the Certify participation page for more information.
Indicate whether the following statements are true or false:
- In the context of the IENT103 materials, economic systems are all based on the question of why something is being produced.
- True
- Incorrect. They are based on the questions what to produce, how (and how much) to produce) and who receives the production output.
- False
- A market economy is based on the principle of public ownership of businesses
- True
- No, a market economy is based on the principle of private enterprise.
- False
- A competitive market is made up of multiple buyers and sellers.
- True
- False
- Incorrect, in a competitive market, no individual buyer or seller can determine the market price.
- If a government is not involved in the economic system of its country in any way, the system is a free market.
- True
- False
- Incorrect. The government does not intervene in a free market system.
Multiple choice questions
- Which ONE of the following statements is NOT true about a market economy?
- In a market economy, the supply of goods and services will influence the price
- This statement is true. Try again.
- In a market economy, economic decision-making is made by the government
- Well done! This is incorrect. In a market economy, decisions are made through markets.
- In a market economy, businesses supply goods and/or services determined by demand
- This statement is true. Try again.
- In a market economy, consumer demand will determine the price of goods and services
- This statement is true. Try again.
- In economic systems, when the supply of a good is the same as the demand, this is known as (select one answer):
- An economic balance
- An economic surplus
- No. A surplus is when the supply of a good is greater than the demand for that good.
- An economic equilibrium
- An economic shortage
- No. A shortage is when demand for a good is greater than the supply.
- Which ONE of the following statements about economic growth is INCORRECT?
- Economic growth must include the effects of inflation
- Well done! This is incorrect. To be most accurate, measurement of economic growth must remove the effects of inflation.
- Economic growth results in the creation of more jobs
- This statement is correct.
- Economic growth is the economic indicator most business people aim to achieve
- This statement is correct.
- Economic growth can be measured by Gross Domestic Product
- This statement is correct.
- Which ONE of the following economic indicators is reported on an almost daily basis?
- The inflation rate
- The monetary policy rate
- The price of oil
- That’s right – the price of oil is reported nearly on a daily basis, though the amount of crude oil produced daily is not reported until the end of the month.
- The unemployment rate
The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Principles of economics for small businesses.
The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Financing a business start-up (IENT103) micro-course. Please consult the Certify participation page for more information.
True - false questions
Indicate whether the following statements are true or false:
Multiple choice questions