INTRO 2022

What are Factors of Production?

• lack of resources

• only the natural resources used for products

• economic resources needed to produce a society's goods & services

• only the labor it takes to produce goods

What type of economy is the most common?

• market segmentation

• mixed economy

• command economy

• market economy or free enterprise

Businesses provide goods, jobs, and services to others.

• TRUE

• FALSE

Businesses seek to earn a profit by providing goods and services to others.

• TRUE

• FALSE

Revenue is the amount a business earns above and beyond what it spends for expenses and costs

• TRUE

• FALSE

Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses

• TRUE

• FALSE

Since all businesses make a profit, starting a business is not risky.

• TRUE

• FALSE

An entrepreneur risks time and money to start and manage a business.

• TRUE

• FALSE

If a business's costs and expenses are greater than its revenue, it will suffer a loss.

• TRUE

• FALSE

Profits of a business include the salaries paid to its employees.

• TRUE

• FALSE