Oracabessa Business Department

The Nature of Business Review Questions

SECTION 1: THE NATURE OF BUSINESS

Question 1

An entrepreneur, having invested large sums of money in a business enterprise can expect to receive.

1. Interest on his investment
2. Salary or wages for his investment and effort
3. Profit on his investment
4. Rent on his investment

The Number For Your Answer is:

Question 2

A system of exchange in which wealth is exchange for wealth is called a

1. Financial group exchange system
2. Monetary system
3. Financial exchange system
4. Barter system

The Number For Your Answer is:

Question 3

The term SCARCITY means that

1. Human desire cannot be satisfy at all
2. Human desire for a product far exceed what is really available
3. Condition affect only the poor in the society
4. A country will never be able to raise the standard of living of its people because of the nature of scarcity

The Number For Your Answer is:

Question 4

Which ONE of the following is NOT a basic question faced by an economy?

1. What are the possibilities for export?
2. What will be produced?
3. For whom will the goods be produced?
4. How will the goods be produced?

The Number For Your Answer is:

Question 5

The opportunity cost of good is

1. The alternative(s) given up in order to obtain the good
2. The price for which you could exchange it for other goods
3. The original cost of the factors of production
4. The cost of producing the good

The Number For Your Answer is:

Question 6

Which of the following are characteristics of the private sector?

I Ownership and control of business by private individuals
II Control of goods and services produced by the state
III Ownership of some business enterprises by foreign investors
IV Personal supervision to ensure effective operation

1. I only
2. I and II only
3. I, II and III only
4. I, III and IV only

The Number For Your Answer is:

Question 7

Caribbean nation, in determining what to produce, how to produce, and for whom to produce goods and services, have adopted the

1. Command or planed economic system
2. Mixed economic system
3. Free market economics system
4. Laissez-faire economic system

The Number For Your Answer is:

Question 8

Early economies could be describe as

1. Surplus economies
2. Service-oriented economies
3. Heavy production- oriented economies
4. Subsistence economies

The Number For Your Answer is:

Question 9

In early economies, surplus produce was disposed of through

1. Free market system
2. Service-oriented systems
3. Barter systems
4. Planned economic system

The Number For Your Answer is:

Question 10

The major difference between the private sector and the public sector is

1. The motive which directs each sector’s activities
2. Insignificant since they both pursuing similar goals
3. Of the little importance to Caribbean nations
4. Of profit motive of the public sector

The Number For Your Answer is:

Your score is: %