IBM_Revision_Chapter 1

The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society’s needs is called .........

• a. consumerism

• b. the economy

• c. capitalism

• d. business

Raw materials, buildings, and machinery are …... resources.

• a. human

• b. financial

• c. labor

• d. material

….... resources include the funds needed to pay wages, purchase raw materials, and operate a business.

• a. Human

• b. Financial

• c. Informational

• d. Material

What resource tells the managers of a business how effectively the other three resources are being combined and used?

• a. Technical

• b. Human

• c. Material

• d. Informational

Organizations that combine raw materials, machinery, and labor to produce goods are called ........

• a. manufacturing businesses

• b. service businesses

• c. market intermediaries

• d. merchandisers

Dien May Xanh stores would most likely be classified as ........

• a. service businesses

• b. a marketing intermediary

• c. manufacturing establishments

• d. perfect competition

During 2022, a retailer had sales revenues of $1,500,000. This retailer also had expenses of $800,000. What is the firm's profit or loss amount?

• a. $2,300,000

• b. $800,000

• c. $700,000

• d. It is impossible to calculate profit or loss with the above information.

.............. is the study of how wealth is created and distributed.

• a. Economics

• b. Business

• c. Marketing

• e. Finance

Microeconomics is the study of ...............

• a. global economies

• c. the decisions made by individuals

• d. the national unemployment rate

• e. productivity in other countries

Tim Garner owns a small shop. However, the prices he can charge are fixed, and he rents his land and building from the government.

Tim's country is most likely a(n) ................ economy.

• a. market

• b. communist

• c. socialist

• e. capitalist