Economics and Marketing

Why is a knowledge of basic economic principles important for businesses?

• It will help them lose more profit

• It can help them make better decisions about meeting consumer needs.

• It will prevent them from needing the services of a financial advisor

• It can guarantee business success

Which of the following is the best example of a business's economic decision?

• hiring part-time employees to save on costs

• Endorsing an independent candidate in state elections

• updating directions to your office on the company website

• Following up with a customer after she exchanged an item

Which of the following is not a factor of production?

• Entrepreneurship

• Human Capital

• land

• Money

In most businesses, what is the most costly factor of production?

• Entrepreneurship

• Land Capital

• Human Capital

• Capital Stock

What is the role of the entrepreneur in the modern economy?

• To preserve natural resources

• To create jobs

• To generate wealth

• to take big risks

If a customer shops at your store because it is on his way home from work, which utility is involved

• Place

• Form

• Possession

• Time

Which condition is a result of open competition in a free market system?

• government regulation

• higher quality goods

• higher prices

• poor customer service

What is the term that describes when the amount of goods produced is about the same as the number of consumers who are willing to buy the product?

• risk

• supply

• demand

• equilibrium point

What is the principle that producers are entitled to make more money from a business than they invest

• profit motive

• free enterprise

• capital stock

• risk and reward