Junior Achievement 7.2 How Much Have You Learned?

It’s time to take the test in the front of your book again. Let’s see how much you learned. (You may be surprised!)

1. _______ is an example of a service. a. A haircut

2. _________ is/are an example of a good. c. Cheeseburgers

3. Individuals or businesses that make goods or perform services are known as ______ c. Producers

4. Which of the following is an example of production? b. Making goods or performing services

5. Which of the following is an example of a bank service? a. Providing loans

6. ________ is/are a business cost that pays for the use of space. b. Rent or mortgage

7. _______ is/are a business cost that pays for the use of electrical and telephone service. d. Utilities

8. Which of the following costs should be included in a business plan? d. All of the above

9. In which of the following circumstances might you use a checking account? b. To avoid carrying and losing money

10. Arthur needed gas for his car, but he wanted to go to the movies with his friend. He only had enough money to do one of these two things. He decided to fill his tank with gas. What was his opportunity cost? b. Going to the movies

11. Which is the definition of profit? c. Money left over after a business pays all of its costs.

12. Which is the definition of free enterprise? d. A system where privately owned businesses compete with one another in hopes of making a profit.

13. You have borrowed money from the bank to open a new business the produces business cards. You have purchased your business supplies. You have hired two employees, rented store space, and purchased advertising. What else needs to be done before opening your store? a. Set product prices

14. At JA BizTown, as in most communities, money leaves businesses through payroll checks and business checks. These checks pay for expenses such as salaries, utilities, and rent. Money comes to businesses when consumers purchase goods and services. What is this movement of money called? d. Circular flow

15. When Amy’s new pizza shop opened, Tia’s pizza shop started free delivery. This is an example of ____________. a. Competition

16. What could you expect from a business that believes in quality and ethics? c. Success in business

17. Which of the following is not one of the four important characteristics of entrepreneurship? b. Make money

18. Money is defined as _______. b. Anything people agree to accept in exchange for goods or services.

19. Which of the following items is NOT usually included on a person’s resume? d. Place of birth

20. When making an important business decision, it is helpful to use the SMART system. What does the “R” stand for in the SMART system? b. Reflect

How did you do?

We hope you learned a lot and had fun being a young entrepreneur. Thank you for participating in Junior Achievement BizTown!