TEST I – MULTIPLE CHOICE

INSTRUCTIONS: Read each statement carefully and ENCIRCLE the LETTER

of the correct answer.

1. Among the following, what is not considered as ‘land’ in economics?

a. Sea grasses on the sea bed

b. Communications towers of a company
c. Fertility of soil
d. Rocks on a mountain

2. What is an economic good?

a. Anything that has money value.

b. Commercial and non-commercial goods
c. Resource allocation
d. None of the above

3. A demand curve is:

a. A graphical representation of a good or service’s price and the

respective quantity supplied
b. A curve showing the purchasing behaviour
c. A graphical representation of a good or service’s price and the
respective quantity demanded
d. Both a & c

4. Equilibrium refers to:

a. The point at which quantity demanded and supply equals each other
b. The point at which supply equals the price
c. The point which maximize the profit
d. The point at which people can save money
5. In which of the business organizations, business secrecy is easy to
maintain?
a. Private Limited Companies
b. Sole Trader
c. Partnerships
d. Public Limited Companies

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TEST II – ANALYSIS

Q.1.

INSTRUCTIONS – You are instructed to differentiate between the given

terms.

Needs Wants

Capital resources Natural resources

Q.2.

INSTRUCTIONS – You are required to read the given passage carefully and
answer the questions given at the end of the passage.

MIXED ECONOMIC SYSTEM - A mixed economic system is a system that

combines aspects of both capitalism and socialism. A mixed economic system
protects private property and allows a level of economic freedom in the use of
capital, but also allows for governments to interfere in economic activities in
order to achieve social aims. According to neoclassical theory, mixed
economies are less efficient than pure free markets, but proponents of
government interventions argue that the base conditions such as equal
information and rational market participants cannot be achieved in practical
application.

1. Which economic system is implemented in your country? [2 marks]

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___________________________________________________________

2. Why do most of the countries follow mixed economic system? Justify your
answer with examples. [ 5 marks]
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 ___________________________________________________________
___________________________________________________________
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3. List three disadvantages of mixed economic system. [3 marks]

a. _________________________________________________________

b. _________________________________________________________

c. _________________________________________________________

TEST III – PROBLEM SOLVING

INSTRUCTIONS – Read the given scenario carefully and based on the

information provided, set up a plan for your society. [5 marks]

Island Game

The Scenario

As far as you know, you are the only survivors of global catastrophe and it is up
to you to develop a new society. This society should meet your needs, as you
define them, and it should avoid the mistakes of "the old ones", those who died
in the recent tragedy.
Use the questions provided to guide your discussion of how you will set up this
new society. Record your answers on a separate sheet of paper headed by the
name you have given to the island.
This is a beautiful island. It is tropical (average temperature 80°F), it has many
sources of food (fruit trees, fish, land for agriculture), and it has a steady wind
from the West of about 15 m.p.h. Remember, this is not a vacation, you have
work to do so get to it !
HANDOUT
SETTING UP YOUR ISLAND SOCIETY
Economic Plan
1. What will be your economic and/or socioeconomic goals? Choose only
most important ones.

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______________________________________________________________
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2. Overall, what will be produced?
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3. How will it be produced & for whom will it be produced?

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4. Who will make those decisions (government, individuals or a mix)?
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5. How will your island government be involved in the economy?
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Directions: Use answers to "Economic Plan" to determine the following. Make
sure your responses are consistent with your overall plan.

Land/Distribution/Location

6. Will the land be privately owned? If so, who gets it and how?
______________________________________________________________
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7. Should the land be owned by everyone together?

______________________________________________________________
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 8. Should you divide it up and distribute it? If so, should it be divided
equally?
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Labour

9. What work must be done?

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List the kinds of jobs required to sustain the lifestyle you desire.

1. _________________________________________________________
2. _________________________________________________________
3. _________________________________________________________
Land

10. What natural resources will be used to produce goods?

______________________________________________________________
______________________________________________________________
11. Will there be rules governing use of natural resources? Why or why not?
If yes, which?
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Capital

12. What kind of capital (tools, machines, etc.) will be used to produce
goods? How will this capital be attained?
______________________________________________________________
______________________________________________________________
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Basic Needs

13. Are there some basic needs that you believe should be guaranteed for
all? If so, what are they? Or do you think that individuals should secure
their needs by themselves?
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14. Create a name for your team that reflects the type of system you have
developed.
______________________________________________________________

TEST IV – ANALOGY

INSTRUCTIONS – Each pair given below represents a relationship. You are

required to select the LETTER of correct option to complete the relationship
between different terms.

For example:

If demand : consumer : : _a_

a. Supply : producer
b. Supply : market
c. Supply : equilibrium price
d. Market economy : mixed economy

1. Equilibrium price : meeting point of supply and demand : : _____

a. Executive summary : brief account of key points

b. Business ethics : rules based on bad principles
c. Sweatshop : worker works for short hours
d. Code of ethics : set of idea

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 2. Students : homework : : _____

a. Ethics : advance principles

b. Social responsibility : best for the good of society
c. Resources : decision making
d. None of the above

3. Teacher : teach : : _____

a. Market research : gathering market information

b. Problem solving : increasing problem
c. Both a & b
d. None of the above

TEST V – SYNTHESIS

INSTRUCTIONS – Imagine you are a business person and running a business

in your country, using the below graphic organizer, design the ways to maximize
the promotion and sales of your product.

(Graphic organizer is on the next page).

1. Start with first step and complete

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 Re - think

Big Idea

Any Plan B

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 INTRODUCTION TO BUSINESS
GRADE 10
GLOSSARY OF KEY TERMS

1. Wants – things that you do not have to have to survive.

2. Needs – things that you must have in order to survive.
3. Goods – are physical products.
4. Services – are tasks that businesses perform for consumers.
5. Resources – are items that people can use to make or obtain what they need or
want.
6. Business – any commercial activity that seeks profit by providing goods and
services to others in exchange for money.
7. Profit – the money left over after a business has paid the cost of providing its
goods and services.
8. Competition – the contest between businesses to win customers.
9. Market research – the act of gathering and analyzing information about the
wants, needs, and preferences of consumers in a certain market.
10. Consumer – a person who uses goods or services.
11. Scarcity – lack of resources.
12. Factors of production – are all the economic resources necessary to produce
society’s goods and services.
13. Natural resources – raw materials from nature that are used to produce
goods.
14. Labor resources – people who make the goods and services for which they
are paid.
15. Capital – the money (hard cash).
16. Capital resources – things used to produce goods and services.
17. Entrepreneurial resources – used by the people who recognize opportunities
and start business.
18. Entrepreneurship – the process of recognizing a business opportunity, testing it
in the market and gathering the resources necessary to start and run a business.
19. Entrepreneurship – an individual who undertakes the creation, organization,
and ownership of a business.
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20. Economics – the study of how individuals and groups of individuals strive to
satisfy their needs and wants by making choices.
21. Economic systems – the methods societies use to distribute resources.
22. Market economy – an economic system in which economic decisions are
made in a marketplace.
23. Price – the amount of money given or asked for when goods and services
are bought or sold.
24. Supply – the amount or quantity of goods and services that producers will
provide at various prices.
25. Demand – the amount or quantity of goods and services that consumers are
willing to buy at various prices.
26. Equilibrium point – is the point at which quantity demand and quantity
supplied meet.
27. Equilibrium price – is the price at which quantity demand and quantity
supplied meet.
28. Equilibrium quantity – is the quantity at which quantity demand and quantity
supplied meet.
29. Command economy – an economic system in which a central authority
makes the key economic decisions.
30. Mixed economy – an economy that contains both private and public
enterprise.
31. Business cycle – the rise and fall of economic activity over time.
32. Prosperity – is a peak of economic activity.
33. Recession – a slowdown in economic activity.
34. Depression – a deep recession that affects the entire economy and lasts for
several years.
35. Recovery – a rise in business activity.
36. Personal characteristics of entrepreneurs
- Persistent
- Risk-taking
- Self-confident

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 - Restless
- Goal-oriented
- Action-oriented
- Responsible
- Self-demanding
- Creative
- Independent
- Inquisitive
- Enthusiastic
37. Business plan – a written description of a new business venture that
describes all aspects of the business.
38. Executive summary – a brief account of the key points contained in a
business plan.
39. Management team plan – presents qualifications and those of any partners.
40. Company description – the description of the firm provides an outline of the
business.
41. Product and service plan – describe the product or service you want to
offer.
42. Vision statement – establishes the scope and purpose of a company and
reflects its values and beliefs.
43. Mission statement – expresses the specific aspirations of a company, the
major goals it will try to reach.
44. Industry overview – presents the research of the industry.
45. Market analysis – presents research about customer profile.
46. Competitive analysis – indicate how the proposed business has an
advantage over its competitors.
47. Marketing plan – discuss how a company makes its customers aware of its
products or services.
48. Operational plan – includes the business processes that result in production
and delivery of the product or service.
49. Organizational plan – looks at the people who will run the firm.

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50. Financial plan – presents forecasts for the business.
51. Growth plan – looks at how the business will expand in the future.
52. Contingency plan – looks at likely risks to the business.
53. Sole proprietorship – a business owned by one person.
54. Unlimited liability – the owner is responsible for the company’s debt.
55. Partnership – a business owned by two or more people.
56. Corporation – a company that is registered by a state and operates apart
from its owners.
57. Limited liability – holds a firm’s owners responsible for no more than the
capital that they have invested in it.
58. Cooperative – an organization that is owned and operated by its members.
59. Nonprofit organization – a type of organization that focuses on providing a
service but not to make profit.
60. Franchise – a contractual agreement to use the name and sell the products
or services of a company in a designated geographic area.
61. Producers – a business that gathers raw goods.
62. Processors – changes raw materials into more finished products.
63. Manufacturers – a business that makes finished products out of processed
goods.
64. Intermediaries – a business that moves goods from one business to
another.
65. Wholesalers – distributes goods.
66. Retailer – purchases goods from a wholesaler and sells them to consumers.
67. Production – the process of creating, expanding, manufacturing, or
improving goods and services.
68. Procurement – the buying and reselling of goods that have already been
produced.
69. Marketing – the process of planning, pricing, promoting, selling and
distributing ideas, goods, and services.
70. Management – the process of achieving company goals by planning,
organizing, leading, controlling, and evaluating the effective use of resources.

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71. Finance – art of money management.
72. Accounting – involves maintaining and checking records, handling bills, and
preparing financial reports for a business.
73. Planning – setting objectives and making long and short term plans for
meeting the objectives.

74. Organizing – obtaining and coordinating resources so that a business’s

objectives can be met.
75. Leading – influencing, guiding, and directing people under one’s
management to carry out their assigned tasks.
76. Controlling – setting standards of work, evaluating performance, and solving
problems that prevent certain tasks’ completion.
77. Organizational chart – show how the firm is structured and who is in charge
of whom.
78. Top – level manager – responsible for setting goals and planning for the
future as well as leading and controlling the work of others.
79. Middle manager – carries out the decisions of top managers.
80. Operational manager – responsible for daily operations of business.
81. Line authority – an organizational structure in which managers on one level
are in charge of those beneath them.
82. Line and staff authority – shows the direct line of authority.
83. Centralized organization – puts authority in one place – with top
management.

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