Entrepreneurship Ch.2 test review

Occurs when people's needs and wants are unlimited and the resources to produce the goods and services to meet those needs are limited

• economic resource

• economic decision making

• wants

• scarcity

• opportunity cost

Things you think you must have in order to be satisfied

• economic resource

• economic decision making

• wants

• scarcity

• opportunity cost

The means by which goods and services are produced

• economic resource

• economic decision making

• wants

• scarcity

• opportunity cost

The process of choosing what needs and wants you will satisfy using the resources you have

• economic resource

• economic decision making

• wants

• scarcity

• opportunity cost

What determines the type of economic system a country has?

• the political beliefs of the country's ruler

• the way the basic economic questions are answered

• the resources of the country

• the demands of the people

The four basic principles of the U.S. economic system are

• private property, freedom of choice, loss, competition

• taxed property, freedom of choice, profit, competition

• private property, freedom of choice, profit, competition

• private property, freedom of choice, capitalism, competition

An example of a noneconomic want is

• clothing

• housing

• friendship

• cars

Which of the following is not a function of business?

• production

• marketing

• job creation

• finance

Another name for economic resources is

• factors of production

• goods and services

• supply and demand

• command economy

The value of the next best alternative - the one you pass up

• economic resource

• economic decision making

• wants

• scarcity

• opportunity cost