Intro 2 Business Chapter 2.1

What is the principle of scarcity?

• A lack of resources

• Unlimited resources

• Limited wants and needs

• Abundance of resources

What are natural resources?

• Materials used to produce goods and services

• Goods and services produced by society

• Raw materials from nature used to produce goods

• Resources used by entrepreneurs to start businesses

Which of the following is a renewable natural resource?

• Wheat

• Coal

• Oil

• Iron

What are labor resources?

• People who make goods and services

• Materials used to produce goods and services

• Goods and services produced by society

• Resources used by entrepreneurs to start businesses

What are capital resources also known as?

• Entrepreneurial resources

• Natural resources

• Labor resources

• Capital goods

Which of the following is an example of capital resources?

• Oil

• Water

• Iron ore

• Farm equipment

What do entrepreneurial resources do?

• Meet society's changing wants and needs

• Make the goods and services for which they are paid

• Recognize business opportunities and start businesses

• Produce goods and services

What is the process of recognizing a business opportunity, testing it in the market, and gathering the resources necessary to start and run a business?

• Scarcity

• Entrepreneurship

• Capital resources

• Labor resources

Who is an individual who undertakes the creation, organization, and ownership of a business?

• Entrepreneur

• Entrepreneurial resources

• Capital resources

• Labor resources

Why do all nations face the problem of scarcity?

• No nation has enough resources to satisfy all of its wants and needs

• All nations have unlimited resources

• No nation has limited resources

• All nations have limited wants and needs