#1
In a capitalist economic system, who determines the prices of goods and services?
Consumers and businesses
ExplanationPrices in a capitalist system are determined by the interactions of consumers and businesses in the market.
#2
Which business structure provides limited liability to its owners?
Corporation
ExplanationA corporation provides limited liability protection to its owners, shielding their personal assets from business liabilities.
#3
Which of the following is a characteristic of a command economy?
Centralized government planning
ExplanationA command economy is characterized by centralized government planning.
#4
What is a characteristic of a mixed economy?
Combination of private and government control
ExplanationA mixed economy combines elements of both private enterprise and government intervention in economic activities.
#5
In which economic system does the government play a minimal role, allowing market forces to determine production, distribution, and pricing?
Capitalism
ExplanationCapitalism is characterized by minimal government intervention, allowing market forces to shape economic activities.
#6
Which business structure combines features of a corporation and a partnership, providing limited liability and flexibility in management?
Limited liability company (LLC)
ExplanationAn LLC combines the limited liability protection of a corporation with the flexibility in management of a partnership.
#7
Which economic system aims for social equality and collective ownership of resources?
Communism
ExplanationCommunism seeks social equality and collective ownership of resources, advocating for a classless society.
#8
In a partnership, how is the decision-making authority typically distributed?
Decentralized among all partners
ExplanationIn a partnership, decision-making authority is typically decentralized and shared among all partners.
#9
What is a disadvantage of a sole proprietorship?
Unlimited personal liability
ExplanationIn a sole proprietorship, the owner bears unlimited personal liability for business debts and obligations.
#10
What is a characteristic of a monopoly?
Single seller dominating the market
ExplanationA monopoly is characterized by a single seller dominating a particular market, leading to limited competition.
#11
What is a key characteristic of a command economy?
Government control over economic decisions
ExplanationA key characteristic of a command economy is the central government's control over economic decisions.
#12
What is the primary goal of a not-for-profit organization?
Providing public benefit
ExplanationThe primary goal of a not-for-profit organization is to provide public benefit rather than generating profits for owners or shareholders.
#13
What is a characteristic of a perfectly competitive market?
Identical products and easy entry/exit
ExplanationA perfectly competitive market is characterized by identical products and easy entry/exit for businesses.
#14
What is a key feature of a cooperative business structure?
Member ownership and decision-making
ExplanationA cooperative business structure is characterized by member ownership and collective decision-making.