Lesson #17 Quiz :Financial Markets (Financial Markets) answer 2025

Question 1

The percentage of the workforce in nonprofit organizations is:

❌ Higher in emerging economies.
❌ Very small in advanced economies.
❌ About the same in both emerging and advanced economies.
✅ Higher in advanced economies.

Explanation:
Advanced economies have a larger nonprofit sector (education, healthcare, charities, research), which employs a higher percentage of the workforce compared to emerging economies.

Question 2

Which of the following are examples of nonprofit organizations? (check all that apply)

✅ Wendy Kopp’s Teach for America.
✅ Dean Karlan’s Innovations for Poverty Action.
✅ Peter Tufano’s Doorways to Dreams.
❌ Robert Shiller’s Case Shiller Weiss Incorporated.

Explanation:
Teach for America, Innovations for Poverty Action, and Doorways to Dreams are nonprofit social-impact organizations.
Case Shiller Weiss Incorporated is a for-profit company.

Question 3

The main differences between cooperatives and nonprofit organizations are: (check all that apply)

❌ Cooperatives have a specific voting system for its members.
❌ Cooperatives do not have profit maximization as the first objective.
✅ Cooperatives may distribute profits.
❌ There are no fundamental differences; only legal treatment differs.

Explanation:
The key difference is that cooperatives can distribute profits to members, while nonprofit organizations cannot distribute profits.

Question 4

Which of the following tend to be true for cooperatives? (check all that apply)

✅ Cooperatives aim to maximize the welfare of the group.
❌ Cooperatives tend to charge higher prices or lower wages.
❌ Cooperatives aim to maximize profits for the group.
❌ Cooperatives are rarely successful.

Explanation:
Cooperatives focus on member welfare, not pure profit maximization, and many cooperatives are highly successful worldwide.

Question 5

A benefit corporation is halfway between:

❌ Not-for-profit organizations and cooperatives.
✅ For-profit and not-for-profit organizations.
❌ None of the above.
❌ For-profit organizations and cooperatives.

Explanation:
A benefit corporation pursues profits like a for-profit firm while also committing to social and environmental goals, similar to nonprofits.

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