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