Chapter One Exam - Intro to Business

Businesses are in operation to:

• Provide goods and services
• Make a profit
• Hire employees who help the business grow while making a living wage
• All of the above

Things that you can see and touch

• Service
• Goods
• Wants
• Demand

The process consumers use to choose wants among several options can best be defined as:

• Decision-making
• Capitalism
• Demand
• Needs

Individuals and organizations that determine what products and services will be available for sale are called:

• Supply
• Opportunity cost
• producers
• trade-off

Not having enough resources to satisfy every need can be defined best as:

• Scarcity
• Demand
• Trade-off
• Service

Capital in its simplest terms is Cash:

• True
• False

Capital is used by a business to buy what they need to run the business

• True
• False

The four economic systems are:

• Market, Command, Mixed, and Traditional
• Demand, Mixed, Market and Traditional
• Command, Standard, Market and Goods
• Demand, Economic, Market and foreign

A Market Economy can be defined as:

• A business system run by the government
• A business system run by individuals or private owners
• A business system similar to socialism
• All of the above

Another name for Market Economy is Socialism, which is the U.S. economic system

• True
• False