AS Business - Chapter 1 Review

The process of producing goods or services to meet customer needs is called _____________.

What is "added value"?

• The profit margin

• The cost of raw materials

• The increase in value from production

• The selling price

The four factors of production are land, labor, capital, and _____________.

What does "scarcity" refer to?

• Unlimited resources

• Overproduction

• Excess demand

• Limited availability

____________ is the value of the next best alternative given up when making a choice.

Entrepreneurs are individuals who _____________.

• Work for a large corporation

• Start and run businesses

• Avoid financial risk

• Only invest in stocks

Employees who innovate within a company are called _____________.

Which of the following is an example of business risk?

• A stable economy

• A number of similar businesses failing

• High customer demand

• A sudden change in fashion or tastes

A pandemic is an example of business _____________.

Economic growth occurs when _____________.

• Production decreases

• Employment declines

• A country's output increases

• Taxes are lowered