Business Essentials quiz 2.03/2.04

A local neighborhood has many houses for sale at a low price, but demand for the houses is low. What kind of market most likely exists in the neighborhood?

Buyer's

Malinda owns a home, and instead of living in it, she decides to rent it out to make more money. Which economic freedom does this illustrate?

Freedom to own, use, buy, and sell private property.

Which of the following economic resources is responsible for combining the other resources to produce goods and services?

Human resources

Which of the following is a benefit of the freedom to own private property:

It encourages people to save and invest.

For which of the following do workers compete in a private enterprise system:

Jobs

Individuals put limits on their own economic freedom by

Making personal economic choices.

One of the differences between private enterprise and other types of economic systems is that in other systems, workers

May be unable to improve their standard of living.

One of the results of freedom in the marketplace is that

People and businesses can own things of value.

Alex owns a guitar, several books, and a telescope. Alex's possessions are examples of

Private Property.

Why are resources considered limited?

There are not enough available so that everyone can have as much of them as desired.

One of the factors that directly limits the economic freedom of individuals in a private enterprise system is government

Taxation.

How do producers answer the economic question of what to produce in a market economy?

They produce products that are the most profitable.

Which of the following is a characteristic of economic services

Useful

in economics capital goods include

buildings and equipment

who answers the basic economic questions in a private enterprise economic system?

businesses and individuals

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good.

consumer

Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is.

economizing

Orlando changes the price of one of his products, and this Price change leads to a major change in the number of people who purchased the product. This means that demand for Orlando's project is

elastic

Marc wants to figure out how much changes in price will effect his business sales so he pays attention to?

elasticity

Producers respond to consumers' positive economic votes by...

increasing production

What do consumers, producers, and resource owners need to have in order to make economic decisions?

information about prices

when there is not enough resources available for everyone to have as much of it as desired the resource is?

limited

What are the incentives in our economy that encourage producers to change and reallocate their resources?

profits

a gap between unlimited wants and limited resources creates

scarcity

Every society must develop a system for deciding how it will use its resources so that it can...

meets peoples needs