Here it is. The answers are highlighted in red
Unit 3 Evaluation
Economics BUSH 035 060
This evaluation will cover the lessons in this unit. It is open book, meaning you can use your
textbook, syllabus, and other course materials. To submit the evaluation, follow the directions
Select the response that best completes the statement or answers the question.
1. What must a sole proprietor do if the business fails?
a. pay all the business debts
b.much legal work to close the business
c.pay off the investors
d.wait ten days before starting another business
2.What does the limited liability of the owners of stock in a corporation mean?
a.The corporation is not responsible for the private debts of the owners of stock.
b.The managers hired by the corporation are not responsible for its debts.
c.The stockholders of a corporation can lose only the money they have invested in it.
d.The corporation can raise money by selling more shares of stock.
3.Why are American firms moving manufacturing jobs overseas?
a.Labor costs less overseas.
b.Transportation is cheaper overseas.
c.More skilled workers are available overseas.
d.Goods are transported overseas when they are finished.
4.Which of the following groups is counted in employment statistics?
a.stay-at-home parents who do volunteer work
b.full-time students with part-time jobs
c.people who work fifteen or more hours without pay in a family business
d.retirees who continue to serve on a board of directors
5.What is one reason many firms hire temporary workers to do a particular job?
a.flexible work arrangements
c.lower hiring and training costs
6.Which of the following statements are true about mergers?
a.In a horizontal merger, the firms are involved in different stages of producing the same good or
b.In a vertical merger, the firms are involved in different stages of producing the same good or
c.In a horizontal merger, the firms compete in different markets with the same good or service.
d.In a vertical merger, the firms compete in the same market, but with a different good or
7.The function of a producer cooperative business is to
a.obtain lower prices for members.
b.work to improve the image and working conditions of its members.
c.save income taxes for members.
d.sell the goods produced by members.
8.What is the largest sector of today’s labor force?
9.What is the basic economic principle that decides how high wages will be?
a.Employers will not pay more than a worker is worth.
b.People who want jobs will find them.
c.Employers will hire the cheapest people.
d.Supply and demand control wages.