Ch. 2 Entrepreneurs in a Market Economy

Everyone's needs and wants are the same.

• True

• False

Economic needs and wants are the basis of an economy.

• True

• False

Only advanced economies have the resources necessary to satisfy everybody's unlimited needs and wants.

• True

• False

As entrepreneurs create more goods and services, consumers have fewer needs and wants.

• True

• False

The rivalry among businesses to sell their goods and services is called competition.

• True

• False

Variable costs are also called "sunk" costs.

• True

• False

Which of the following of Maslow's needs must be satisfied first?

• security

• physiological

• self-actualization

• social

Products you can see and touch are called:

• services

• factors of production

• economic resources

• goods

American entrepreneurs:

• increase unemployment by taking the best jobs for themselves

• create products that change the way people live and conduct business

• have little impact on supply and demand

• all of the above

Communism is an example of a traditional economy.

• True

• False