Review Quiz: Intro to Business & Economics

What is scarcity in economics?

• Having unlimited resources

• Limited resources vs unlimited wants

• Running out of money

• A shortage of workers

Businesses exist only to make a profit.

• True

• False

Which of the following is NOT a factor of production?

• Land

• Labor

• Money

• Capital

If a store has too much inventory of a product, what might they do?

• Raise prices

• Lower prices

• Stop selling completely

• Increase advertising only

When demand is high and supply is low, prices usually _______.

• Decrease

• Stay the same

• Increase

• Disappear

Which of these is an example of how businesses impact daily life?

• Providing jobs

• Making laws

• Controlling the weather

• Giving free resources

A business owner has $5,000. She can buy new equipment OR start a marketing campaign. What principle is she facing?

• Inflation

• Scarcity

• Opportunity cost

• Profit

Consumers, businesses, and government all make choices because resources are unlimited.

• True

• False

Which role do businesses serve when they create jobs?

• Provider of goods/services

• Employer

• Innovator

• Consumer

You’re starting a small business. If demand for your product is high, what should you consider doing?

• Lowering your price

• Increasing your price

• Closing your business

• Ignoring demand