Junior Achievement 7.2Junior Achievement 7.2

How Much Have You Learned?How Much Have You Learned?

It’s time to take the test in It’s time to take the test in the front of your book the front of your book

again. Let’s see how much again. Let’s see how much you learned.you learned.

(You may be surprised!)(You may be surprised!)

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

a. A haircuta. A haircut

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

c. Cheeseburgersc. Cheeseburgers

3. Individuals or 3. Individuals or businesses that make businesses that make

goods or perform services goods or perform services are known as ______are known as ______

c. Producersc. Producers

4. Which of the following 4. Which of the following is an example of is an example of

production?production?b. Making goods or b. Making goods or performing servicesperforming services

5. Which of the following is 5. Which of the following is an example of a bank an example of a bank

service?service?

a. Providing loansa. Providing loans

6. ________ is/are a 6. ________ is/are a business cost that pays for business cost that pays for

the use of space.the use of space.

b. Rent or mortgageb. Rent or mortgage

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

service. service.

d. Utilitiesd. Utilities

8. Which of the following 8. Which of the following costs should be included costs should be included

in a business plan?in a business plan?

d. All of the aboved. All of the above

9. In which of the following 9. In which of the following circumstances might you circumstances might you use a checking account?use a checking account?

b. To avoid carrying and losing b. To avoid carrying and losing moneymoney

10. Arthur needed gas for 10. Arthur needed gas for his car, but he wanted to his car, but he wanted to go to the movies with his go to the movies with his

friend. He only had friend. He only had enough money to do one enough money to do one of these two things. He of these two things. He

decided to fill his tank with decided to fill his tank with gas. What was his gas. What was his opportunity cost?opportunity cost?b. Going to the moviesb. Going to the movies

11. Which is the 11. Which is the definition of profit?definition of profit?

c. Money left over after a c. Money left over after a business pays all of its costs.business pays all of its costs.

12. Which is the 12. Which is the definition of free definition of free

enterprise?enterprise?

d. A system where privately d. A system where privately owned businesses compete with owned businesses compete with one another in hopes of making a one another in hopes of making a

profit.profit.

13. You have borrowed money 13. You have borrowed money from the bank to open a new from the bank to open a new

business the produces business business the produces business cards. You have purchased your cards. You have purchased your

business supplies. You have business supplies. You have hired two employees, rented hired two employees, rented store space, and purchased store space, and purchased

advertising. What else needs to advertising. What else needs to be done before opening your be done before opening your

store?store?

a. Set product pricesa. Set product prices

14. At JA BizTown, as in most 14. At JA BizTown, as in most communities, money leaves communities, money leaves businesses through payroll businesses through payroll

checks and business checks. checks and business checks. These checks pay for expenses These checks pay for expenses such as salaries, utilities, and such as salaries, utilities, and

rent. Money comes to rent. Money comes to businesses when consumers businesses when consumers purchase goods and services. purchase goods and services.

What is this movement of What is this movement of money called?money called?d. Circular flowd. Circular flow

15. When Amy’s new pizza 15. When Amy’s new pizza shop opened, Tia’s pizza shop opened, Tia’s pizza

shop started free delivery. shop started free delivery. This is an example of This is an example of

____________.____________.

a. Competitiona. Competition

16. What could you expect 16. What could you expect from a business that from a business that

believes in quality and believes in quality and ethics?ethics?

c. Success in businessc. Success in business

17. Which of the following 17. Which of the following is not one of the four is not one of the four

important characteristics important characteristics of entrepreneurship?of entrepreneurship?

b. Make moneyb. Make money

18. Money is defined as 18. Money is defined as _______._______.

b. Anything people agree to b. Anything people agree to accept in exchange for goods accept in exchange for goods

or services.or services.

19. Which of the following 19. Which of the following items is NOT usually items is NOT usually

included on a person’s included on a person’s resume?resume?

d. Place of birthd. Place of birth

20. When making an 20. When making an important business important business

decision, it is helpful to decision, it is helpful to use the SMART system. use the SMART system.

What does the “R” stand What does the “R” stand for in the SMART system?for in the SMART system?

b. Reflectb. Reflect

How did you do?How did you do?

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