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ENTREPRENEURSHIP: CHAPTER 2 TEST

Total questions: 25

Worksheet time: 19mins

Name
Class
Date
1.

Entrepreneurs who create products that change the way people live and conduct business are called _______________.

a)

Bill Gates

b)

scarcity

c)

change agents

d)

profit

2.

The factors of production are:

a)

natural resources, capital resources, and human resources

b)

economic resources, goods, services, needs, and wants.

c)

Market economy, traditional economy, scaric

d)

profit, private property, freedom of choice and competition

3.

The difference between the revenues earned by a business and the costs of operating the business is called _______________.

a)

competition

b)

scarcity

c)

opportunity cost

d)

profit

4.

An example of a noneconomic want is :

a)

clothing

b)

housing

c)

friendship

d)

cars

5.

Which of the following is not an example of a service?

a)

lawn care

b)

carwash

c)

bicycle

d)

cable TV installation

6.

If a product has inelastic demand, a price increase demand, a price increase will cause

a)

consumers to buy more

b)

competitors to enter the market

c)

consumers to buy less

d)

little or no change in the demand for the item

7.

Which of the following is not a role played by entrepreneurs in the U. S. economy

a)

supply good and services to meet consumer needs and wants

b)

provide capital investment and job creation

c)

determine how to allocate natural resources

d)

serve as agents for change

8.

List the functions of a business:

4 lines
9.

Things that you think you must have in order to be satisfied:

a)

wants

b)

demand

c)

needs

d)

capitalism

10.

The means through which goods and services are produced:

a)

economic resource

b)

capitalism

c)

demand

d)

economies of scale

11.

Occurs when people's needs and wants are unlimited and the resources to produce the goods and services to meet those needs are limited.

(a)  

12.

The process of choosing which needs and and wants you will satisfy using the resources you have:

(a)  

13.

The value of the next-best alternative--the one you pass up:

a)

supply

b)

wants

c)

variable costs

d)

opportunity cost

14.

Equilibrium price and quantity is _________.

a)

The point at which supply and demand meet:

b)

fixed costs

c)

equilibrium price and quantity

d)

marginal cost

15.

Measures the advantages of producing one additional unit of a good or service:

a)

profit

b)

fixed costs

c)

supply

d)

marginal cost

16.

The private ownership of resources by individuals rather than the government:

a)

fixed costs

b)

capitalism

c)

supply

d)

demand

17.

The quantity of a good or service that consumers will buy at a given price:

a)

demand

b)

supply

c)

variable costs

d)

needs

18.

Costs that go up and down depending on the quantity of the good or service produced:

a)

marginal benefit

b)

variable costs

c)

opportunity cost

d)

marginal cost

19.

The United States operate under what economic system?

(a)  

20.

In a ____________ _____________ economy, goods and services are produced the way they have always been produced.

(a)  

21.

In a ________________ economy, individuals an businesses as well as the government are involved in making decisions in the marketplace.

a)

Mixed

b)

Market

c)

Traditional

d)

Command

22.

In a _________ ___________, the government determines what, how, and for whom goods and services are produced.

(a)  

23.

In a (a)   economy, individuals and businesses decide what, how, and for whom goods and services are produced.

24.

Another name for economic resources is:

a)

factors of production

b)

supply and demand

c)

goods and services

d)

command economy

25.

Which of the following is not a function of business?

a)

production

b)

marketing

c)

job creation

d)

finance