Ch 1 Quiz

Businesses create products that add comfort and pleasure to your life. This best describes...

• Wants

• Needs

Businesses that perform an activity such as a mechanic fixing your car or a stylist cutting your hair are considered...

• Goods

• Services

What are the 4 factors of production?

• Land, liberty,

  Prosperity, happiness

• Land, goods, services, scarcity

• Land, labor, capital, money

• Land, labor, capital, and entrepreneurship

Scarcity exists because these are limited...

• Wants and needs

• Goods

• Resources

• Services

These are physical items you can buy...

• Goods

• Services

• Entrpreneurship

• Opportunity costs

Jen can study for her test after school or go to work. If she decides to go to work, the opportunity cost of her decision is....

• The money she could have made

• The better grade she could have received from studying more

• The people she could have seen at work

• Spending time with friends

With every decision, we miss out on something or give something up. This is called the.....

• Scarcity

• Opportunity cost

• Factors of production

• Opportunity benefit

Entrepreneurs run the business with hopes of making money. They also...

• Take all the money of the business

• Manage the other 3 factors of production

• Have little to no risk in running a business

• Have poor decision making skills

Shoes, clothes, and toys are all examples of

• Goods

• Services

The amount of a good or service that consumers are willing and able to buy is known as...

• Needs

• Supply

• Demand

• Opportunity costs