Economics Test (03/25)
What is entrepreneurship?
The person that takes a risk to start a business
When producing goods and services, what do businesses desire to do?
use limited resources in the best way they can
division of labor
when workers are assigned a specialized task or job
Things that are made ...
Goods
Every time we make an economic choice, what two things occur?
A benefit and a cost
How can a business improve productivity?
All of the above
How is the value of each purchase of choice we make decided?
By looking at the missed opportunity
Why is productivity important to businesses?
In order to make goods/ services cheaper in increase profits
What does opportunity cost mean?
It is when a person gives up when they make a choice
What is capital?
Money and all things that are needed to produce a good or service
What are the four factor's of production?
Natural Resources, Labor, Capital and Entrepreneurship
What is unlimited and endless in economics?
Needs and Wants
What is labor?
People that perform work to do something
Anything that is used to make a good or service
Resources
What is limited in economics?
Resources
What is the main economic problem?
Scarcity
Work performed for another person
Services
What does scarcity mean?
There is not enough of something
What are natural resources?
Things found on Earth
Things people may desire to have but are not necessary for survival
Wants
capital resources
anything a business buys in order to make goods such as tools and equipment
Because of scarcity, what do we have to make?
choices
The things that people need and want are classified into
goods and services
specialization
is when a business focuses on producing a specific type of good or service
How do consumer's benefit from companies being more productive?
less expensive goods
What is the main goal of a business?
make a profit
The knowledge gained from studying economics will enable you to ...
make wiser economic decisions throughout your life
Economics is all about ....
making decisions
profit
money a business makes after expenses
productivity
the amount of good or services workers can produce in a period of time.
What is a need?
things we need to survive