Principles of Business Unit 3 Flashcard

Front

What is the main purpose of a business?

Back

To earn profit by meeting customer needs

Front

Which of the following is NOT a factor of production? Land, Labor, Money, Entrepreneurship

Back

Money

Front

What is the economic term for the next best alternative given up when making a choice?

Back

Opportunity cost

Front

Which market structure has only one seller and no close substitutes?

Back

Monopoly

Front

If demand increases and supply stays the same, what will happen to the equilibrium price?

Back

It will increase

Front

Which equation shows how to calculate profit?

Back

Front

Which of these is a service business? Car manufacturer, Grocery store, Law firm, Clothing retailer

Back

Law firm

Front

What is the main function of management?

Back

To organize and coordinate resources to achieve goals

Front

What is a "market economy"?

Back

An economy where supply and demand set prices and production

Front

If a business’s revenue is $50,000 and expenses are $35,000, what is its profit?

Back

$15,000