Intro to Business Ch 2

The definition of ________ is a shortage of resources.

Which is NOT a factor of production?

• Labor

• Marketplace

• Natural Resources

• Capital

Which statement about natural resources is true?

• Agriculture products are renewable because new crops can be grown each season

• Coal is renewable because there is so much of it still in the ground

• Lumber is not renewable because it takes a long time to grow new trees

• Water is renewable because it can be produced

Which statement about natural resources is NOT true?

• Natural resources can be processed to make goods

• The amount of natural resources available to a society has little affect on the economy

• Synthetic materials such as nylon can be made from natural resources

• Countries that have scare natural resources must get them from somewhere else

Which factor of production means the same as human resources?

A machine used to make molded plastic toys is an example of what factor of production?

Which is most likely to profit from society's changing wants and needs?

• A business with substantial labor resources

• An entrepreneur

• A producer of goods

• A business with existing capital resources

_________ refers to how people satisfy their needs and wants by making choices.

Giving up the chance to use a resource for one thing instead of another is ______

What are two basic types of economic systems?

• Market economy and command economy

• Private enterprise and free enterprise

• Competition and profit

• Supply and demand