BMAS Chapter 2 - Economics

Entrepreneurial resources are different from labor resources.

• TRUE

• FALSE

Two basic types of economic systems are a market economy and a demand economy.

• FALSE

• TRUE

Resources are the things necessary for making only what people need.

• TRUE

• FALSE

Every society has enough productive resources to produce everything people want and need.

• FALSE

• TRUE

Every type of business needs labor resources to produce goods & provide services.

• True

• False

In a market economy, producers set a price that

• a. consumers can afford

• b. government will allow

• c. will cover their costs and result in a profit

• d. consumers are willing to pay

In a command economy,

• a. highly skilled workers earn the same as low-skilled workers

• b. highly skilled workers earn less than low-skilled workers.

• c. highly skilled workers earn more than low-skilled workers

• d. highly skilled workers are not needed

Most nations have a

• a. moderate command economy

• b. pure command economy

• c. pure market economy

• d. mixed economy

All of the following are factors of production except

• a. educational resources

• b. natural resources

• c. labor resources

• d. capital resources

A... is a combination of a market economy and a command economy