Business Essentials Unit 2 Review

The economic resource where people work to produce goods or services are:

• capital goods

• human resources

• natural resources

• noneconomic goods

What economy is based on public or governmental ownership of the production and distribution of goods?

• capitalist

• mixed

• socialist

• traditional

What is the name for markets with only a few sellers, such as the markets for automobiles, pharmaceuticals, or oil?

• oligopolies

• monopolies

• perfect competition

• monopolistic competition

What form of risk management is this?

• avoidance

• reduction

• retention

• transfer

Which of the following is a primary characteristic of a command economy?

• High competition among businesses

• Market-driven prices

• Government control of resources

• Private ownership of resources

A characteristic of a seller’s market is:

• lower profits

• higher prices

• larger supply

• smaller demand

Which factor is a barrier to small-business and entrepreneurial success?

• poor management

• no vision for expansion

• having a clear strategic vision

• having a surplus of employees

The economic system that adopts the fewest new ideas or improvements is:

• communist

• market

• socialist

• traditional

A form of demand for products in which changes in price correspond to changes in demand is:

• consumer

• elastic

• equilibrium

• inelastic

What do service businesses sell?

• raw goods and services

• retail goods and services

• intangible goods and services

• wholesale goods and services