Question 3(Multiple Choice Worth 5 points)

Question

(01.05 MC)

Which of the following is an example of a disadvantage of the profit motive?

A fence company uses a new process to install fence posts in less time.
A manufacturer offers a bonus to employees who have ideas that increase productivity.
A retail store owner decreases employees' pay to reduce payroll expenses.
Employees at an insurance company work remotely to save money on office space.
Question 4(Multiple Choice Worth 5 points)
(01.05 LC)

What impact do small businesses have on global economic development?

They account for the majority of the businesses worldwide, except in developing countries.
They contribute to the local economy by generating 60–70 percent of employment.
They decrease competition in their local communities.
They contribute 55 percent of the money spent on goods and services produced in developed economies.

Answer 1

Question 3: C) A retail store owner decreases employees' pay to reduce payroll expenses.

Question 4: B) They contribute to the local economy by generating 60–70 percent of employment.