1. When a firm's expenses are greater than its sales revenue, the firm has a:
profit.
loss.
production system.
planned economy.
market economy.

2. The way a society answers the questions of how wealth is created and distributed determines the kind of:
government.
manufacturing system.
economic system.
competition.
needs.

3. The total amount of goods and services produced in a given time period, divided by the number of hours worked, indicates a country’s:
gross national product.
cultural diversity.
gross domestic product.
real national product.
productivity.

4. Which of the following statements is untrue?
Sales of U.S. products overseas now represents over 10% of profits for U.S. corporations.
It is virtually impossible to travel outside the United States and not see U.S. products and advertising.
The U.S. is an attractive market for foreign competitors.
Foreign firms have purchased many well-known U.S. companies.
International business is not very important to the U.S. economy.

5. According to the law of supply and demand, the price at which the quantity supplied is equal to the quantity demanded is the:
pure price.
subsidized price.
fair price.
equilibrium price.
fixed price.

6. The history of economic growth in the United States shows that the growth:
is slow and steady.
is a cycle of repeated economic expansions and contractions.
has nothing to do with inflation and recessions.
is based almost totally on population increases.
is based almost totally on the creation of new money.