Intro To Business Ch. 2 Revew

The most prevalent (numerous) economy in the world is a_____

• command economy

• market economy

• mixed economy

• pure command economy

Scarcity is

• shortage of wants

• shortage of needs

• shortage of resources

• shortage of ice cream

True or False: Resources are the things necessary for making what people need and want

• True

• False

True or False: Educational resources are factors of production?

• True

• False

In a market economy, prices are set by producers that

• will cover their costs and result in profit

• consumers can afford

• the government will allow

• consumers are willing to pay

Equilibrium price is the point where the quantity demanded is more than the quantity supplied. True or False

• True

• False

The amount of goods that producers will provide at various prices is

• price

• supply

• scarcity

• demand

Labor resources are

• Things used to produce

• raw materials

• people who make goods

• capital resources

An entrepreneur is

• someone who takes on the risks of business ownership

• someone who is the president of a company

• someone who builds things

The amount of goods that consumers are willing to buy at various prices is called

• supply

• demand

• scarcity