FBLA Introduction to Business Concepts Practice Questions with Explanations
Free FBLA Introduction to Business Concepts practice questions with an explanation for every answer. Covers economics, opportunity cost, profit and revenue, business ownership, and business operations.
Questions
Which of these is an economic good?
- Sunlight at a public beach
- A smartphone sold in a store
- A tax-preparation appointment
- A haircut at a salon
Which of these is a service?
- A dental cleaning
- A box of cereal
- A used textbook
- A pair of running shoes
A customer cannot see, touch, or hold a massage before buying it. Which characteristic of services does this describe?
- Inseparability
- Intangibility
- Perishability
- Variability
An empty seat on a flight cannot be sold once the plane takes off. This shows that services are:
- Tangible
- Intangible
- Perishable
- Inseparable
Which list contains the four factors of production?
- Supply, demand, price, and profit
- Land, labor, capital, entrepreneurship
- Money, workers, machines, and stores
- Goods, services, needs, and wants
In economics, capital resources are:
- Tools, buildings, and equipment used in production
- Money kept in a personal savings account
- Natural materials such as water and timber
- The physical and mental effort that workers provide
Crude oil, timber, and fresh water are examples of which economic resource?
- Entrepreneurship
- Labor
- Land
- Capital
The basic economic problem caused by unlimited wants and limited resources is called:
- Recession
- Scarcity
- Inflation
- Specialization
Maya works a Saturday shift for $90 instead of going to a concert with friends. What is her opportunity cost?
- Nothing, since she earned money
- The ticket price plus the $90
- The concert she gave up
- The $90 she earned at work
According to the law of demand, when the price of a product rises, the quantity demanded usually:
- Falls
- Rises
- Stays the same
- Doubles
According to the law of supply, when the price of a product rises, producers usually:
- Lower their prices to compete
- Offer less of it for sale
- Offer more of it for sale
- Stop making it entirely
The price at which the quantity supplied equals the quantity demanded is the:
- Price ceiling
- Equilibrium price
- Retail price
- Price floor
A store prices a jacket well above its equilibrium price. What is the most likely result?
- A surplus of jackets
- A decrease in supply
- A shortage of jackets
- An increase in demand
A popular celebrity starts wearing a certain brand of sneakers. What most likely happens?
- Quantity demanded falls
- Supply shifts to the left
- Demand shifts to the left
- Demand shifts to the right
Economics is best defined as the study of:
- How companies design their advertisements
- How individuals balance a checkbook
- How governments print and distribute money
- How people choose to use limited resources
Which three activities make up the economic activities of a society?
- Saving, spending, and borrowing money
- Production, distribution, consumption
- Planning, organizing, and controlling
- Buying, selling, and trading stocks
Which of the following are services? (Select all that apply.)
- A printed textbook
- Lawn mowing
- A bag of mulch
- Tutoring
A service can be produced ahead of time and stored in inventory to sell later.
The primary role of business in society is to:
- Guarantee a job to every adult in the community
- Satisfy needs and wants with goods and services
- Set the prices for the national economy
- Collect taxes on behalf of the government
A bakery turns flour, eggs, and sugar into cakes. Which type of utility has it created?
- Place utility
- Time utility
- Possession utility
- Form utility
A convenience store stays open 24 hours so customers can shop whenever they want. Which utility does this provide?
- Form utility
- Time utility
- Possession utility
- Place utility
A car dealer offers financing so a customer can drive a new car home today. Which utility does this add?
- Possession utility
- Form utility
- Time utility
- Place utility
A company charges customers a monthly fee for ongoing access to its product. Which business model is this?
- Subscription
- Brick-and-mortar
- Franchise
- Freemium
An app is free to download, but users pay to unlock premium features. This business model is called:
- Freemium
- Direct sales
- Subscription
- Wholesale
A retailer operates physical stores and also sells through its website. This is a ___ business model.
- Online-only
- Click-and-mortar
- Freemium
- Brick-and-mortar
An organizational chart is used to show:
- The company's sales results for each month
- Which customers buy the most products
- The steps a product follows on an assembly line
- Lines of authority and reporting in a company
The line of authority that runs from the top of an organization down to the bottom is the:
- Mission statement
- Span of control
- Chain of command
- Organizational culture
The number of employees a manager directly supervises is that manager's:
- Span of control
- Job description
- Chain of command
- Line of credit
A company with few levels of management and wide spans of control has a ___ organizational structure.
- Tall
- Vertical
- Centralized
- Flat
In a centralized organization, most important decisions are made by:
- Customers
- Each department on its own
- Front-line employees
- Top management
From the United States' point of view, soybeans grown in Iowa and sold to buyers in China are:
- Tariffs
- Exports
- Imports
- Quotas
A tax placed on goods imported into a country is a(n):
- Tariff
- Embargo
- Subsidy
- Quota
A government limit on the quantity of a product that can be imported is a(n):
- Exchange rate
- Tariff
- Quota
- Embargo
A government ban on trade with a specific country is a(n):
- Free-trade agreement
- Embargo
- Quota
- Tariff
If the U.S. dollar strengthens against the euro, U.S.-made products become ___ for buyers in Europe.
- Free of tariffs
- Unaffected in price
- More expensive
- Less expensive
Which of the following is an EXTERNAL factor that affects a business?
- The owner's personal management style
- The company's employee training program
- A new government rule on packaging
- The layout of the company's offices
Rising interest rates that make borrowing more expensive are an example of which type of business-environment factor?
- Technological
- Ecological
- Economic
- Social
Growing consumer interest in plant-based foods is an example of which type of business-environment factor?
- Political
- Social/cultural
- Legal
- Technological
Business ethics refers to:
- Moral principles that guide business conduct
- Federal laws that set the minimum wage
- The process of hiring new employees
- Accounting rules for recording company sales
A salesperson exaggerates a laptop's battery life to close a sale. This is an example of:
- Relationship selling
- Suggestion selling
- Deceptive selling
- Consultative selling
A purchasing manager orders supplies from her brother's company without telling her employer. This is an example of a:
- Business cycle
- Copyright violation
- Conflict of interest
- Product recall
A company donates part of its profits to local schools and works to reduce its waste. This shows:
- Social responsibility
- Vertical integration
- Monopoly power
- Price discrimination
A restaurant adds online ordering and delivery after noticing more customers want to eat at home. The restaurant is:
- Reducing its market share
- Adapting to market changes
- Creating a monopoly
- Ignoring customer trends
Which federal agency protects consumers from unfair or deceptive business practices?
- Federal Trade Commission (FTC)
- Internal Revenue Service (IRS)
- Occupational Safety and Health Administration (OSHA)
- Federal Reserve System (Fed)
Laws designed to prevent monopolies and promote competition are called:
- Zoning laws
- Copyright laws
- Antitrust laws
- Tort laws
Which of the following is a public good typically provided by government?
- A gym membership
- A video game console
- A restaurant meal
- National defense
The Securities and Exchange Commission (SEC) mainly regulates:
- Safety conditions in the workplace
- The safety of food and drugs
- Radio and television broadcasting
- The sale of stocks and securities
Which federal agency sets and enforces workplace safety standards?
- OSHA
- FCC
- EPA
- FDA
Government protection that gives an inventor exclusive rights to an invention for a set period of time is a:
- Trademark
- Patent
- Copyright
- License
Which of the following would a business most likely consider a technological factor in its environment?
- A new AI tool that automates billing
- A shift in teen fashion preferences
- A drop in consumer confidence
- A change in the minimum wage law