Business Management- Chapter 8 Test

Form utility usually applies only to services and not goods.

• True

• False

Economic utility is one of the four types of utility that satisfy wants.

• True

• False

Selling snow tires to a customer during the first snowstorm of the season is an example of providing time utility.

• True

• False

Entrepreneurship is a factor of production.

• True

• False

If a country did not produce any capital goods, it could not produce many consumer goods.

• True

• False

Capital goods directly satisfy human wants.

• True

• False

The United States has adequate resources to satisfy all the wants of all its people.

• True

• False

Countries with a command economy are often dictatorships.

• True

• False

Privatization occurs when a government transfers to a business its authority to provide a good or service.

• True

• False

Demand is represented by wanting an expensive sports car without having the money to buy it.

• True

• False