Business Intro Chapter 2

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

• True

• False

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

• True

• False

Entrepreneurial resources are different from labor resources.

• True

• False

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

• True

• False

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

• True

• False

A shortage of resources is called

• reduction.

• threat.

• scarcity.

• limitation.

Scarcity occurs when

• demand exceeds supply.

• distribution breaks down.

• conservation is at an all-time high.

• consumers’ needs exceed wants.

All of the following are factors of production except

• educational resources.

• natural resources.

• labor resources.

• capital resources.

Some natural resources, such as wheat and cattle, are

• imported.

• irreplaceable.

• renewable.

• artificially produced.

Buildings, delivery trucks, and equipment are all examples of

• permanent assets.

• capital resources.

• short-term investments.

• capital.