#1
In a capitalist economic system, who determines the prices of goods and services?
Government authorities
Consumers and businesses
Labor unions
International organizations
#2
Which business structure provides limited liability to its owners?
Sole proprietorship
Partnership
Corporation
Limited liability company (LLC)
#3
Which of the following is a characteristic of a command economy?
Private ownership of resources
Centralized government planning
Market-driven production
Profit motive
#4
What is a characteristic of a mixed economy?
Government controls all economic activities
No government intervention
Combination of private and government control
Consumer-driven production
#5
In which economic system does the government play a minimal role, allowing market forces to determine production, distribution, and pricing?
Socialism
Communism
Capitalism
Mixed economy
#6
Which business structure combines features of a corporation and a partnership, providing limited liability and flexibility in management?
Sole proprietorship
Limited liability company (LLC)
Corporation
Partnership
#7
Which economic system aims for social equality and collective ownership of resources?
Capitalism
Communism
Socialism
Mixed economy
#8
In a partnership, how is the decision-making authority typically distributed?
Centralized in one partner
Decentralized among all partners
Managed by a hired CEO
Controlled by government authorities
#9
What is a disadvantage of a sole proprietorship?
Limited liability
Ease of formation
Unlimited personal liability
Tax advantages
#10
What is a characteristic of a monopoly?
Multiple sellers in the market
Single seller dominating the market
Equal market share among competitors
Perfect competition
#11
What is a key characteristic of a command economy?
Private ownership of resources
Market-driven production
Government control over economic decisions
Competition among businesses
#12
What is the primary goal of a not-for-profit organization?
Maximizing shareholder profits
Minimizing costs
Providing public benefit
Competing for market share
#13
What is a characteristic of a perfectly competitive market?
Few sellers dominating the market
Identical products and easy entry/exit
One seller controlling the entire market
High barriers to entry
#14
What is a key feature of a cooperative business structure?
Limited liability for members
Profit maximization
Control by a single owner
Member ownership and decision-making