POB Chapter 8

Form utility usually applies only to services and not to goods.

Economic utility is one of the four types of utility that satisfy wants.

Selling snow tires to a customer during the first snowstorm of the season is an example of providing time utility.

Entrepreneurship is a factor of production.

If a country did not produce any capital goods, it could not produce many consumer goods.

Capital goods directly satisfy human wants.

The availability of natural resources, labor, and capital goods are all that is needed to produce goods.

Economists include government as a factor of production.

When productive resources are used for capital formation, fewer consumer goods are produced.

The United States has adequate resources to satisfy all the wants of all its people.