Chapter 2 Review

A Business Plan might also be called a

• innovation and/or details

• balance sheet and/or cash flow statement

• human resource policy manual and/or bank loans

• roadmap and/or pitch deck

This stage of the entrepreneurial process is where you determine if your idea fills a void or gap in the marketplace, whether it meets a want or need:

• Discovery

• Resourcing

• Harvesting

• Business Plan

The study of how individuals and societies make decisions about resources, production, distribution, exchange, and consumption of goods and services, given unlimited and competing wants, and given the scarcity of resources is:

• Social Science

• Economics

• Economic Utility

• Inflation

The study of behavior and decision-making of individuals and businesses in an economy is:

• macroeconomics

• microeconomics

• economic utility

• economic want

Choosing between two things that cannot be had or done at the same time, which may require a compromise is a/an:

• noneconomic want

• opportunity cost

• resource

• trade-off

What basic questions do societies need to answer. Select THREE options.

(a)   ​ (b)   ​ (c)  

• What should be produced?
• For Whom are the items produced?
• Where should items be produced?

• Why should items be produced?

• How should items be produced?

The reality that people’s wants always exceed the resources available to fulfill those wants is:

• 
  consumption

• economics

• inflation

• scarcity

Desires for goods, services or intangible items that can only be acquired by spending money are:

• economic wants

• noneconomic wants

• macroeconomics

• microeconomics

Desires that do not require money to be obtained are:

• 
  economic wants

• 
  capital goods

• noneconomic wants

• natural resources

Something’s usefulness and the degree to which wants are satisfied is called:

• consumption

• distribution

• economic utility

• economic want