UBU 1 CHAPTER

Watsons and Guardian are both examples of _______________.

• production intermediaries

• manufacturing businesses

• service businesses

• marketing intermediaries

Which of the following is not included in material resources?

• Labor

• Buildings

• Machines

• Minerals

How well off an individual or a society is, mainly in terms of want satisfaction through goods and services is referred to as _______________.

• risk

• expenses

• standard of living

• factors of production

Manu, a student enrolled in a foundation business class, has studied the various types of economic systems. He has concluded that the best type of economic system is one that encourages private enterprise, subject to regulation by the government. He also believes that certain services, such as social security and health care benefits, should be managed by the government. Manu supports which of the following types of economic systems?

• capitalism

• socialism

• communism

• microeconomics

Suppose that A Company decides to shut down entirely its domestic automobile production in the United States and move its operations to other countries. All the individuals in the United States who would be negatively impacted by such a decision are referred to as which of the following?

• owners

• stakeholders

• shareholders

• Sustainability

A free-market economic system is one in which the market of buyers and sellers decides what is produced, how much is produced, and how it is distributed. Select one:

• True

• False

Recently, Jane, the Prime Minister of ABC Island announced that she is standing behind the concept of state owned (owned by government) utilities and public schools in her nation. Although not all industry is owned and managed by the government, her ideas would lead one to believe that she has a preference for socialism. Select one:

• True

• False

Under capitalism, the government prohibits people and businesses from competing with each other. Select one:

• True

• False

The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues. Select one:

• True

• False

Business is any activity that attempts to provide goods and services to others while operating at a (a)