Chpt. 1 - Intro to Business

An economic system where the economic resources are privately owned by individuals rather than government 

• communism 
• fiscal policy 
• capitalism 
• monetary policy 

A term for all the activities involved in developing and exchanging products

• economics
• commerce
• business
• market

Products are commonly known as

• needs and wants

• goods and services

• factors and production

• functions of business

Utility describes the characteristics of a product that satisfy

• scarcity

• needs and wants

• opportunity cost

• supply and demand

Which of the following is not a function of a business?

• capitalism

• marketing

• finance

• production

Entrepreneurs take risks to start and run.....

• economic resources

• the state of Texas

• the country

• businesses

In a __________ economy, individuals are free to make their own economic decisions.

• market

• command

• open

• traditional

The market price for a product is determined at a point where.....

• demand exceeds supply

• supply exceeds demand

• supply equals demand

• none of the above

When demand for a product becomes greater than available supply a(n) _________ develops

• surplus

• shortage

• equilibrium

• competition

Businesses operate to earn ___________?

• Money

• Revenue

• Taxes

• Profits