Topic 2: Economics and Private Enterprise Review Questions

Which of the following is an example of an economic good?

• A conversation with a friend
• A government service
• A smartphone
• A public park

What is the primary difference between economic wants and needs?

• Wants are essential items, while needs are desires.
• Wants require spending money, while needs are essential items.
• Wants are free, while needs cost money.
• Wants are temporary, while needs are permanent.

Why is it important for marketers to understand the end user?

• To increase product prices
• To reduce advertising costs
• To tailor products and services to meet consumer needs
• To limit product availability

Which statement about economic services is true?

• They have utility, are scarce, and are transferable.
• They are always free.
• They are only provided by the government.
• They cannot be sold.

Which of the following best describes consumer products?

• Products that are only sold in bulk
• Products that are sold directly to consumers for personal use
• Products that are only available online
• Products that are used for business purposes

How do market, margin, and mission interact in evaluating business opportunities?

• They increase competition
• They reduce costs
• They limit consumer choice
• They create a balanced business model

How does effective marketing impact customer acquisition?

• It reduces customer satisfaction
• It limits product variety
• It increases production costs
• It helps attract and retain customers

What impact does entrepreneurship have on society?

• It reduces job opportunities
• It fosters innovation and economic growth
• It limits consumer choices
• It decreases competition

How might inflation impact GDP growth?

• It always increases GDP
• It has no effect on GDP
• It can distort the real growth of the economy
• It reduces consumer spending

In 2022, which country had a higher GDP than the United States?

• Germany
• Japan
• China
• India