An entrepreneur is best defined as a person who

• manages a business

• is a role model for young Americans

• manages the finances of a large corporation

• takes financial risk to try new business ideas

You are starting a lawn care business. Which of the following would be a needed land resource?

• Lawns

• Oil

• Lawnmowers

• Hedge Clippers

Meg and her mother are opening a cupcake shop. They buy an oven, a walk-in cooler, and a decorating table. In terms of factors of production, what are these items?

• Capital

• Entrepreneurship

• Land

• Labor

Your friend likes to direct all the activities of his business. It would be best for him to create a

• limited liability company

• sole proprietorship

• corporation

• partnership

Stefan has inherited a large amount of money and decides he wants to start a skateboard shop. He has money to invest up front, but he lacks business expertise. Which of the following would be his best business options, depending on what he is willing to risk?

• Corporation or sole proprietorship

• Limited liability company or corporation

• Partnership or limited liability company

• Sole proprietorship or partnership

A monopoly is a market for a good or service that

• has few competitive firms

• is perfectly competitive

• has one buyer

• has one seller

A firm's purpose in nonprice competition is to

• Produce at the lowest cost possible.

• Encourage other firms to cooperate in setting prices.

• Establish extensive control of their particular market.

• Distinguish their products from those of other companies.

"You can't make a great peanut butter sandwich without Smuckers'® jelly!" This advertisement targets your

• fears

• rituals

• emotions

• social values

Why do purely competitive markets tend to benefit consumers over producers?

• Companies control quality and supply

• Companies work together to set prices favorable to consumers

• Competition is driven by factors other than price

• Consumers control price through demand

Based on this chart, what is the marginal cost, in dollars, to produce four jackets? (5 points)

• 12

• 13

• 55

• 68