Entrepreneurship Mid Term

The act of assuming the risk of organizing productive resources to produce goods and services.

• business
• critical thinking
• entrepreneurship
• risk management

Which one of these is NOT a characteristic of an entrepreneur?

• risk taker
• idea person
• generalist
• specialist

Any reward or benefit that motivates people to do something.

• incentive
• money
• bonus
• financial gain

The value of the next best alternative that has to be given up for the action that is chosen is the (3)

• factors of production.
• opportunity cost.
• trade-off.
• productivity.

Businesses can make decisions about the best use of their resources by analyzing (9)

• economic pricing models.
• production possibilities.
• government policies.
• generalizations about consumer behavior.

If there is a decrease in the demand for a good, what will most likely happen to the equilibrium price and quantity of that good?

• Neither price or quantity will change.

• Price and quantity will both increase.

• Price and quantity will both decrease.

• Price increases while quantity decreases.

• Price decreases while quantity increases.

The fundamental problem in economics is that resources are limited; yet needs, wants, and desires are unlimited. This is summed up by the concept of

• money.

• power.

• greed.

• scarcity.

• investment.

What are NOT one of the three basic questions of Economics?

• WHAT to Produce?

• HOW to Produce?

• For WHOM to Produce?

• WHEN to Produce?

What two things determine value?

• Good and Service

• Want and Need

• Scarcity and Utility

• Benefit and Cost

The study of how people try to satisfy unlimited and competing wants through the use of scarce resources.

• Economics

• Opportunity Cost

• Opportunity Benefit

• Scarcity