Intro to Business: Unit 1

No business can produce goods or services without

• marketing research

• resources

• values and goals

• advertising

Opportunity costs

• must be associated with a monetary value

• should not be considered when making decisions

• will never be associated with monetary value

• do not need to be associated with a monetary value

Inflation makes it easier to

• keep money in a savings account for retirement expenses

• create a monopoly

• plan for the future and make decisions

• all the above are correct

• none of these are correct

A monopoly may be allowed to exist

• without question in any situation

• only if all other business in the same industry approve it

• only if they agree to pay a portion of their profits to government officials

• if it benefits instead of hurts customers

The principle that producers will generally supply more of an item at a higher price refers to

• law of shortage

• equilibrium price

• market

• law of supply

A surplus may occur

• after a sudden unexpected decrease in demand

• when a product grows in popularity

• when there is a price decrease but no other changes

One example of an intermediary is

• medical personnel

• a clothing wholesaler

• an automobile assembly line worker

• an apple orchard

A monopoly can help to encourage competition among small businesses in the same field

• Sometimes True

• Never True

• Always True

Profits do not allow businesses to

• pay their employess

• innovate

• pay their investors

• all of these are correct

• none of these are correct

Governments

• generally dislike all business activity

• do not benefit from business

• are not impacted by business activity

• benefit from business by collecting taxes