PBMF Ch 1 Review

​ (a)   is anything that is bought or sold.

• Product
• business
• profit
• merchandise

​ (a)   is the difference between the ​ (b)   earned and ​ (c)   incurred by a business during a specific period of time.

• Profit
• income
• expenses

A ​ (a)   is something a person must have in order to survive, such as food, clothing, and shelter.

A ​ (b)   is something that a person desires but can survive without.

• need
• want

The understanding that the price of a product is determined by the relationship of the supply of a product and the demand for the product is known as the law of ________.

• consumer behavior

• scarcity

• physics

• supply & demand

Match each word with the correct definition.

• entrepreneur

• an individual or group who buys products

• customer

• customers who purchase goods & services for their own use

• consumer

• people who start a new business or purchase an existing business

Select the five types of utility provided by business.

Match each function of a business with the correct definition.

• production

• all activities that identify, anticipate, and satisfy customer demand while making a profit

• management

• any activity related to making a product

• marketing

• the process of controlling and making decisions about a business

• finance

• all business activities that involve money

Identity three market forces that impact business.

(choose 3)

• supply & demand

• economic freedom

• profit motive

• competition

• profit

Place the steps of the decision-making process in order from beginning (1) to end (5).

• Choose the best alternative

• Implement the decision

• Evaluate the decision

• Research alternatives

• Define the problem or challenge

Match each economic system witht he correct definition.

• mixed economy

• the government makes all the economic decisions for its citizens

• command economy

• economic decisions are based on society's values, culture, and customs

• market economy

• both the government and individuals make decisions about economic resources

• traditional economy

• individuals are free the make their own economic decisions