Intro to Business - Chapter 2 Review Quiz

What is scarcity?

• unlimited wants and needs

• a shortage of resources

• a lack of goods and services

• limited expenses

Which is NOT a factor of production?

• natural resourecs

• labor

• capital

• the marketplace

Which statement about natural resources is NOT true?

• Natural resources can be processed to make goods.

• The amount of natural resources available to a society has little effect on its economy.

• Synthetic materials such as nylon can be made from natural resources.

• Countries that have scarce natural resources must get them from somewhere else.

Which means the same as "human resources"?

• capital resources

• service providers

• labor resources

• unskilled workers

Which is an example of a capital resource?

• a machine used to make molded plastic toys

• a customer service representative

• money borrowed from a bank

• the president of a company

Which is most likely to profit from society's changing wants and needs?

• a business with existing capital resources

• a producer of goods

• an entrepreneur

• a business with substantial labor resources

Which refers to how people satisfy their needs and wants by making choices?

• entrepreneurship

• economics

• equilibrium

• opportunity

What is "opportunity cost"?

• the income people receive by taking risks

• giving up the chance to use a resource for one thing instead of another

• the methods and labor used to produce a good

• the income people have to purchase goods and services

What are two basic types of economic systems?

• supply and demand

• competition and profit

• private enterprise and free enterprise

• market economy and command economy

Which is a characteristic of capitalism?

• Resources are privately owned.

• Resources are shared equally.

• There is an even distribution of income.

• Prices are determined by government planners.