Goodheart Ch. 1 Test

____ is the term for all activities involved in developing and exchanging products.

• Business
• Entrepreneurship
• Economics
• Corporation

A ____ is anywhere buyers and sellers meet to buy and sell goods and services.

• store
• workplace
• restaurant
• market

____ utility is added when a business changes the form of a good or service to make it more useful.

• Possession
• Time
• Form
• Place

A ____ economy is one in which economic decisions are based on a society’s values, culture, and customs.

• command
• market
• traditional
• mixed

_______________ occurs when demand is higher than the available resources.

• trade-off
• scarcity
• capitalism
• competition

Willingness and ability to start a new business.

• opportunity
• entrepreneurship
• labor
• none of the above

Make own decisions but must accept consequences

• personal choice
• opportunity cost
• freedom of choice
• freedom of decision

Customers who purchase goods and services for their own use are called ____________________.

• clients
• consumers
• business workers
• competitors

Something that a person desires but can live without is called a ____________________.

• need
• want
• desire
• good

____________________ goods are the products businesses use to produce other goods.

• Business
• Profitable
• Capital
• Consumer