Chapter 2 Intro to Business
if you were going to start a small cake decorating business, which type of market structure would you most likely be entering a. perfect competition b. monopolistic competition c. oligopoly d. monopoly
B
what determines the type of economic system a country has a. 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
which of the following is NOT an example of a service a. lawn care b. car wash c. bicycle d. cable tv installation
bicycle
economics is about making ________ and _________ the needs and wants of consumers
choices; satisfying
mixed economy
combines elements of the command and market economies
what are the four major market structures
competition, monopolistic competition, oligopoly, monopoly
variable costs
costs that go up and down depending on the quantity of the good or service produced
An example of a noneconomic want is a. clothing b. housing c. friendship d. cars
friendship
what are the three basic economic questions countries must answer
how, what, and for whom
marginal benefit
measures the advantages of producing one additional unit of a good or service
marginal costs
measures the disadvantages of producing one additional unit of a good or service
What three kinds of economic resources are used by entrepreneurs to produces goods and services
natural resources, Human Resources, and capital resources
scarcity
occurs when people's needs and wants are unlimited and resources are limited
capitalism
private ownership of resources by individuals
functions of businesses
production, marketing, management, and finance
supply
quantity of a good or service a producer is willing to produce at different prices
traditional economies
simple economies operated according to tradition or custom
economic resources
the means through which goods and services are produced
equilibrium price and quantity
the point at which supply and demand meet
economic decision making
the process of choosing which wants you will satisfy using resources you have
demand
the quantity of a good or service consumers will buy at a given price
opportunity cost
the value of the next-best alternative -- one you must pass up
wants
things that you think you must have in order to be satisfied
monopoly
when there is only one provider of a good or service
oligopoly
a small number of businesses that gain the majority of total sales revenues
another name for economic resources is a. factors of production b. goods and services c. supply and demand d. command economy
A
the ford motor company operates in which type of market structure a. perfect competition b. monopolistic competition c. oligopoly d. monopoly
C
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 choice, profit, competition
C
which of the following is NOT a function of business a. production b. marketing c. job creation d. finance
C
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 capita investment and job creation c. determine how to allocate natural resources d. serve as agents for change
C
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