INSTRUCTIONS: Read each statement carefully and ENCIRCLE the LETTER of the correct answer.

Transcription

1 TEST I MULTIPLE CHOICE INSTRUCTIONS: Read each statement carefully and ENCIRCLE the LETTER of the correct answer. 1. Among the following, what is not considered as land in economics? a. Sea grasses on the sea bed b. Communications towers of a company c. Fertility of soil d. Rocks on a mountain 2. What is an economic good? a. Anything that has money value. b. Commercial and non-commercial goods c. Resource allocation d. None of the above 3. A demand curve is: a. A graphical representation of a good or service s price and the respective quantity supplied b. A curve showing the purchasing behaviour c. A graphical representation of a good or service s price and the respective quantity demanded d. Both a & c 4. Equilibrium refers to: a. The point at which quantity demanded and supply equals each other b. The point at which supply equals the price c. The point which maximize the profit d. The point at which people can save money 5. In which of the business organizations, business secrecy is easy to maintain? a. Private Limited Companies b. Sole Trader c. Partnerships d. Public Limited Companies Page 1 of 13

2 TEST II ANALYSIS Q.1. INSTRUCTIONS You are instructed to differentiate between the given terms. Needs Wants Capital resources Natural resources Q.2. INSTRUCTIONS You are required to read the given passage carefully and answer the questions given at the end of the passage. MIXED ECONOMIC SYSTEM - A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims. According to neoclassical theory, mixed economies are less efficient than pure free markets, but proponents of government interventions argue that the base conditions such as equal information and rational market participants cannot be achieved in practical application. 1. Which economic system is implemented in your country? [2 marks] 2. Why do most of the countries follow mixed economic system? Justify your answer with examples. [ 5 marks] Page 2 of 13

3 3. List three disadvantages of mixed economic system. [3 marks] a. b. c. TEST III PROBLEM SOLVING INSTRUCTIONS Read the given scenario carefully and based on the information provided, set up a plan for your society. [5 marks] Island Game The Scenario As far as you know, you are the only survivors of global catastrophe and it is up to you to develop a new society. This society should meet your needs, as you define them, and it should avoid the mistakes of "the old ones", those who died in the recent tragedy. Use the questions provided to guide your discussion of how you will set up this new society. Record your answers on a separate sheet of paper headed by the name you have given to the island. This is a beautiful island. It is tropical (average temperature 80 F), it has many sources of food (fruit trees, fish, land for agriculture), and it has a steady wind from the West of about 15 m.p.h. Remember, this is not a vacation, you have work to do so get to it! HANDOUT SETTING UP YOUR ISLAND SOCIETY Economic Plan 1. What will be your economic and/or socioeconomic goals? Choose only most important ones. Page 3 of 13

4 2. Overall, what will be produced? 3. How will it be produced & for whom will it be produced? 4. Who will make those decisions (government, individuals or a mix)? 5. How will your island government be involved in the economy? Directions: Use answers to "Economic Plan" to determine the following. Make sure your responses are consistent with your overall plan. Land/Distribution/Location 6. Will the land be privately owned? If so, who gets it and how? 7. Should the land be owned by everyone together? Page 4 of 13

5 8. Should you divide it up and distribute it? If so, should it be divided equally? Labour 9. What work must be done? List the kinds of jobs required to sustain the lifestyle you desire Land 10. What natural resources will be used to produce goods? 11. Will there be rules governing use of natural resources? Why or why not? If yes, which? Capital 12. What kind of capital (tools, machines, etc.) will be used to produce goods? How will this capital be attained? Page 5 of 13

6 Basic Needs 13. Are there some basic needs that you believe should be guaranteed for all? If so, what are they? Or do you think that individuals should secure their needs by themselves? 14. Create a name for your team that reflects the type of system you have developed. TEST IV ANALOGY INSTRUCTIONS Each pair given below represents a relationship. You are required to select the LETTER of correct option to complete the relationship between different terms. For example: If demand : consumer : : _a_ a. Supply : producer b. Supply : market c. Supply : equilibrium price d. Market economy : mixed economy 1. Equilibrium price : meeting point of supply and demand : : a. Executive summary : brief account of key points b. Business ethics : rules based on bad principles c. Sweatshop : worker works for short hours d. Code of ethics : set of idea Page 6 of 13

7 2. Students : homework : : a. Ethics : advance principles b. Social responsibility : best for the good of society c. Resources : decision making d. None of the above 3. Teacher : teach : : a. Market research : gathering market information b. Problem solving : increasing problem c. Both a & b d. None of the above TEST V SYNTHESIS INSTRUCTIONS Imagine you are a business person and running a business in your country, using the below graphic organizer, design the ways to maximize the promotion and sales of your product. (Graphic organizer is on the next page). 1. Start with first step and complete Page 7 of 13

8 Re - think Big Idea Any Plan B Page 8 of 13

9 INTRODUCTION TO BUSINESS GRADE 10 GLOSSARY OF KEY TERMS 1. Wants things that you do not have to have to survive. 2. Needs things that you must have in order to survive. 3. Goods are physical products. 4. Services are tasks that businesses perform for consumers. 5. Resources are items that people can use to make or obtain what they need or want. 6. Business any commercial activity that seeks profit by providing goods and services to others in exchange for money. 7. Profit the money left over after a business has paid the cost of providing its goods and services. 8. Competition the contest between businesses to win customers. 9. Market research the act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market. 10. Consumer a person who uses goods or services. 11. Scarcity lack of resources. 12. Factors of production are all the economic resources necessary to produce society s goods and services. 13. Natural resources raw materials from nature that are used to produce goods. 14. Labor resources people who make the goods and services for which they are paid. 15. Capital the money (hard cash). 16. Capital resources things used to produce goods and services. 17. Entrepreneurial resources used by the people who recognize opportunities and start business. 18. Entrepreneurship the process of recognizing a business opportunity, testing it in the market and gathering the resources necessary to start and run a business. 19. Entrepreneurship an individual who undertakes the creation, organization, and ownership of a business. Page 9 of 13

10 20. Economics the study of how individuals and groups of individuals strive to satisfy their needs and wants by making choices. 21. Economic systems the methods societies use to distribute resources. 22. Market economy an economic system in which economic decisions are made in a marketplace. 23. Price the amount of money given or asked for when goods and services are bought or sold. 24. Supply the amount or quantity of goods and services that producers will provide at various prices. 25. Demand the amount or quantity of goods and services that consumers are willing to buy at various prices. 26. Equilibrium point is the point at which quantity demand and quantity supplied meet. 27. Equilibrium price is the price at which quantity demand and quantity supplied meet. 28. Equilibrium quantity is the quantity at which quantity demand and quantity supplied meet. 29. Command economy an economic system in which a central authority makes the key economic decisions. 30. Mixed economy an economy that contains both private and public enterprise. 31. Business cycle the rise and fall of economic activity over time. 32. Prosperity is a peak of economic activity. 33. Recession a slowdown in economic activity. 34. Depression a deep recession that affects the entire economy and lasts for several years. 35. Recovery a rise in business activity. 36. Personal characteristics of entrepreneurs - Persistent - Risk-taking - Self-confident Page 10 of 13

11 - Restless - Goal-oriented - Action-oriented - Responsible - Self-demanding - Creative - Independent - Inquisitive - Enthusiastic 37. Business plan a written description of a new business venture that describes all aspects of the business. 38. Executive summary a brief account of the key points contained in a business plan. 39. Management team plan presents qualifications and those of any partners. 40. Company description the description of the firm provides an outline of the business. 41. Product and service plan describe the product or service you want to offer. 42. Vision statement establishes the scope and purpose of a company and reflects its values and beliefs. 43. Mission statement expresses the specific aspirations of a company, the major goals it will try to reach. 44. Industry overview presents the research of the industry. 45. Market analysis presents research about customer profile. 46. Competitive analysis indicate how the proposed business has an advantage over its competitors. 47. Marketing plan discuss how a company makes its customers aware of its products or services. 48. Operational plan includes the business processes that result in production and delivery of the product or service. 49. Organizational plan looks at the people who will run the firm. Page 11 of 13

12 50. Financial plan presents forecasts for the business. 51. Growth plan looks at how the business will expand in the future. 52. Contingency plan looks at likely risks to the business. 53. Sole proprietorship a business owned by one person. 54. Unlimited liability the owner is responsible for the company s debt. 55. Partnership a business owned by two or more people. 56. Corporation a company that is registered by a state and operates apart from its owners. 57. Limited liability holds a firm s owners responsible for no more than the capital that they have invested in it. 58. Cooperative an organization that is owned and operated by its members. 59. Nonprofit organization a type of organization that focuses on providing a service but not to make profit. 60. Franchise a contractual agreement to use the name and sell the products or services of a company in a designated geographic area. 61. Producers a business that gathers raw goods. 62. Processors changes raw materials into more finished products. 63. Manufacturers a business that makes finished products out of processed goods. 64. Intermediaries a business that moves goods from one business to another. 65. Wholesalers distributes goods. 66. Retailer purchases goods from a wholesaler and sells them to consumers. 67. Production the process of creating, expanding, manufacturing, or improving goods and services. 68. Procurement the buying and reselling of goods that have already been produced. 69. Marketing the process of planning, pricing, promoting, selling and distributing ideas, goods, and services. 70. Management the process of achieving company goals by planning, organizing, leading, controlling, and evaluating the effective use of resources. Page 12 of 13

13 71. Finance art of money management. 72. Accounting involves maintaining and checking records, handling bills, and preparing financial reports for a business. 73. Planning setting objectives and making long and short term plans for meeting the objectives. 74. Organizing obtaining and coordinating resources so that a business s objectives can be met. 75. Leading influencing, guiding, and directing people under one s management to carry out their assigned tasks. 76. Controlling setting standards of work, evaluating performance, and solving problems that prevent certain tasks completion. 77. Organizational chart show how the firm is structured and who is in charge of whom. 78. Top level manager responsible for setting goals and planning for the future as well as leading and controlling the work of others. 79. Middle manager carries out the decisions of top managers. 80. Operational manager responsible for daily operations of business. 81. Line authority an organizational structure in which managers on one level are in charge of those beneath them. 82. Line and staff authority shows the direct line of authority. 83. Centralized organization puts authority in one place with top management. Page 13 of 13