Entrepreneurship: ideas in action Chapter 2 review questions

Another name for economic resources is a. factors of production b. goods and services c. supply and demand d. command and market

b. goods and services

The FORD Motor Company operates in which type of market structure? a. perfect competition b. monopolistic competition c. oligopoly d. monopoly

b. monopolistic completition

What determines the type of economic system a country has? a. the political beliefs of the country's ruler b. the way the basic economic questions are answered c. the resources of the country d. the demands of the people

b. the way the basic economic questions are answered

Which of the following is NOT a role of entrepreneurs in the U.S. economy? a. supply goods and services to meet consumer needs and wants b. provide capital investment and job creation c. determine how to allocate natural resources d. serve as agents for change

c. determine how to allocate natural resources

an example of a non-economic want is a. clothing b. housing c. friendship d. cars

c. friendship

Which of the following is NOT a function of business? a. production b. marketing c. legal environment d. finance

c. legal environment

If you were going to start a small retail store selling gift items, which type of market structure would you most likely be entering? a. perfect competition b. monopolistic competition c. oligopoly d. monopoly

c. oligopoly

The four basic principles of the U.S. economic system are a. private property, freedom of choice, loss, competition b. taxed property, freedom of choice, profit, competition c. private property, freedom of choice, profit, competition d. private property, limited of choice, profit, competition

c. private property, freedom of choice, profit, competition

which of the following is NOT an example of a service? a. lawn care b. car wash c. television d. cable TV installation

c. television

If a product has inelastic demand, a price increase will cause a. consumers to buy more b. competitors to enter the market c. consumers to buy less d. little or no change in the demand for the item

d. little or no change in the demand for the item

an individual's need or desire for a product or service at a given price

demand

the process of choosing which wants you will satisfy using the resources you have

economic decision making

The means through which goods and services are produced are called

economic resources

point at which supply and demand meet

equilibrium price and quantity

measures the advantages of producing one additional unit of a good and service

marginal benefit

the value of the next-best alternative--the one you must pass up

opportunity cost

Occurs when people's needs and wants are unlimited and resources are limited

scarcity

costs that go up and down depending on the quantity of the good or service produced

variable

those things that you think you must have in order to be satisfied

wants

What are the three basic economic questions countries must answer?

1. What goods and services will be produced? 2. How will the goods and services be produced? 3. What needs and wants will be satisfied with the goods and services produced?

private ownership of resources by individuals

Capitalism