Fundamentals of Economics

People have ________ wants, while resources are _________.

• limited, unlimited

• unlimited, limited

• limited, limited

• unlimited, unlimited

What is given up when a choice is made...what is this called?

• opportunity cost

• choice

• scarcity

• budget

What is a medium of exchange?

• loans

• money

• banks

What is considered currency?

• printed money

• coins

• checks, debit cards and credit cards

• all of the above

_________ offer checking, savings, loans, mortgages, certificates of deposit (CDs) and credit cards.

• credit unions

• banks

• insurance office

These financial institutions make loans to businesses and individuals receive deposits.

• credit unions

• banks

• courts

• sheriff's office

Limited liability means that any financial obligations belong to the corporation, not the owners.

• True

• False

Which type of business involves 2 or more owners who share risks and profits?

• corporation

• proprietorship

• partnership

________ is a person who takes risks to produce and sell goods in search of a profit.

• entrepreneur

• proprietor

• business owner

Which type of business organization is authorized by law to act as a legal entity regardless of the number of owners?

• corporation

• proprietorship

• partnership