1.Workers in the island nation of Rainland have enjoyed an increase in the number of holidays and a reduction in the average length of the workday. This has reduced the total number of hours they work each year. However, the output per worker is higher now than it was before the reduction in hours. These facts imply that productivity on the island has increased.

True or False

2.It's important that firms are as efficient as possible. This is done by becoming management-driven for efficiency.

True or False

3.Which of the following entails the greatest amount of risk?

Multiple Choice

• Working for the government
• Working for a large business
• Working for a small business
• Starting a business

4.Cantlivia is a small and poor nation, but its current prime minister has a desire to create more wealth for her citizens. The prime minister has received recommendations from several of her advisors. Which of the following recommendations is likely to create the most wealth for Cantlivia?

Multiple Choice

• Acquire more land by invading a neighboring country that is even poorer and weaker than Cantlivia.
• Use foreign aid from other nations to purchase more tools and machinery.
• Establish a business environment that promotes and rewards entrepreneurship.
• Establish barriers to trade to protect Cantlivia businesses from foreign competition.

5.Effectiveness means producing goods and services using the least amount of resources.

True or False