Entrepreneurship Chapter 2

Earning a college degree would belong in which stage of Maslow's Hierarchy of needs?

• Self-Actualization

• Physiological

• Social

• Security

Which of the following is an example of a need?

• A new MP3 player

• A warm coat in winter

• Dinner at the best restaurant in town

• Concert Tickets

Your needs and wants:

• are the same as everybody else's.

• are never ending.

• can all be satisfied if you have enough money.

• all of the above.

Which of the following would be considered a capital resource?

• the oil used to run machinery

• employees who work on an assembly line

• executives who decide how to operate a business

• a truck used to make deliveries

Individuals and businesses decide what, how, and for whom goods and services are produced in a:

• Market Economy

• Traditional Economy

• Complex Economy

• Command Economy

The private ownership of resources by individuals rather than the government is called:

• Objectivism

• Socialism

• Capitalism

• Communism

How does competition benefit consumers?

• It forces a business to improve products.

• It encourages businesses to provide good customer service.

• It provides an incentive for businesses to keep prices as low as possible.

• All of the above

Demand is probably MOST inelastic for which of the following items?

• Refrigerators

• Diamonds

• Milk

• Filet Mignon Steak

____________ exists when there is only one provider of a product or service.

• Perfect Competition

• An Oligopoly

• Monopolistic Competition

• A Monopoly

Sunshine Bakery had the following costs for the month: Rent: $700, Flour: $1,500, Insurance: $350, Loan Payment: $1,400. What were the total fixed costs for Sunshine Bakery for the month?

• $1,500

• $3,950

• $2,450

• There are no fixed costs given.