Chapter 1 Quiz - Intro to Business

Which of the following is a need?

• Designer sneakers

• A car upgrade

• Food to eat

• A vacation

Which statement best describes a service?

• A loaf of bread sold at the grocery store

• A mechanic fixing your car

• A video game

• A bottle of water

Which of the following is an example of a capital resource?

• Factory machinery

• A farmer

• Fresh vegetables

• Rainfall

Which economic system gives individuals and businesses the most freedom to make decisions?

• Command

• Market

• Mixed

• Traditional

Which factor would most likely cause an increase in demand for smartphones?

• Prices rise sharply

• A new model with better features is released

• People’s incomes decrease

• Supply of smartphones doubles

Match the term with its correct description. A. Scarcity B. Opportunity Cost C. Goods D. Consumers E. Human Resources 6. ___ People who use or purchase products

• A. Scarcity

• B. Opportunity Cost

• C. Goods

• D. Consumers

Match the term with its correct description. A. Scarcity B. Opportunity Cost C. Goods D. Consumers E. Human Resources 7. ___ Physical items you can touch and own

• A. Scarcity

• B. Opportunity Cost

• C. Goods

• E. Human Resources

Match the term with its correct description. 8. ___ People who create goods and services

• E. Human Resources

• A. Natural Resources

• B. Capital Resources

• C. Entrepreneurs

Match the term with its correct description. 9. ___ Giving up one choice to pursue another

• B. Opportunity Cost

• A. Marginal Benefit

• C. Sunk Cost

• D. Trade-off

Match the term with its correct description. 10. ___ Not having enough resources to meet all wants

• A. Scarcity

• B. Abundance

• C. Surplus

• D. Wealth