What is the role of an entrepreneur in business?

To combine land, labor, and capital to create a business

How does competition benefit customers?

It encourages businesses to lower prices and improve quality

Someone who uses goods and services

Define the term business.

A company that sells goods or services for a profit

Why is competition important for business?

It forces businesses to improve their products and prices

Which of the following is an example of economic consumption?

A family buying and using groceries

What happens when businesses compete for customers?

Businesses often improve their products or services

What is the role of economic resources in production?

They help produce goods and services

In a competitive market, which of the following is a common strategy businesses use?

Offering lower prices and better services

Which of the following answers best describe distribution?

Sending goods from producers to consumers

How do entrepreneurs contribute to the economy?

By organizing resources and bringing innovation

Which of the following best describes labor as an economic resource?

The people who work to produce goods and services

The difference between the revenue and the cost of production

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Business and Economics Basics

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Questions 25

Answers

1
Which of the following is an example of a service?
T-Shirt
Laptop
Haircut
Cell Phone
2
If a business spends $1,000 to make a product, then sells it to customers for $1,500 - what is the profit?
$500
$100
$50
$0
3
Which of the following would be considered a capital resource?
Water
Business Idea
Customer
Factory Building
4
What is the role of an entrepreneur in business?
To invest in capital
To regulate the economy
To combine land, labor, and capital to create a business
To provide labor
5
How does competition benefit customers?
It increases the prices of goods
It reduces the variety of products available
It encourages businesses to lower prices and improve quality
It forces consumers to buy more products
6
A factory worker is an example of which economic resource?
Labor
Entrepreneurship
Land
Capital
7
What is a CONSUMER?
An organization that provides goods and services
Someone who uses goods and services
Someone who sells goods and services
A person who works for a business
8
Define the term business.
The process of making products
The money left over after costs are paid
A person who buys goods
A company that sells goods or services for a profit
9
Which of the following is an example of a capital resource?
A new business idea
Employees
Tools and Machinery
Forests and Minerals
10
Why is competition important for business?
It reduces the need for advertising
It forces businesses to improve their products and prices
It eliminates other companies from the market
It decreases the variety of products available
11
The money left over after all business expenses are paid is called?
Loss
Revenue
Capital
Profit
12
Which of the following is an example of economic consumption?
A factory producing clothes
A family buying and using groceries
A store delivering a product
A business hiring new workers
13
What is an example of a natural resource?
Buildings
Business Plan
Factory Worker
Forests
14
A car is an example of?
Good
Economic Resource
Service
Capital Resource
15
What is the main goal of most businesses?
To provide services for free
To hire the most employees
To produce the most products
To make a profit
16
What happens when businesses compete for customers?
Prices increase
Fewer choices are available
Businesses stop advertising
Businesses often improve their products or services
17
A plumber fixing a sink is an example of:
Good
Consumption
Production
Service
18
Which of the following is an example of a good?
Apple iPhone
Dentist cleaning your teeth
Teacher giving a lesson
Car Wash
19
What is the role of economic resources in production?
They help produce goods and services
They increase competition
They determine the price of goods
They are consumed by businesses
20
In a competitive market, which of the following is a common strategy businesses use?
Reducing product quality
Offering lower prices and better services
Decreasing product variety
Limiting their customer base
21
Which of the following answers best describe distribution?
Creating goods and services
Sending goods from producers to consumers
Purchasing products from businesses
Consuming goods
22
How do entrepreneurs contribute to the economy?
By lowering the prices of goods
By organizing resources and bringing innovation
By increasing the supply of labor
By using natural resources
23
The process of production is:
Consuming goods
Delivering goods to consumers
Creating goods or services
Buying goods from businesses
24
Which of the following best describes labor as an economic resource?
The innovation and ideas behind a business
The tools and machinery used in production
The raw materials used in production
The people who work to produce goods and services
25
What is profit?
The expenses a business has to pay
The total money a business makes
The difference between the revenue and the cost of production
The cost of producing a product

Business and Economics Basics Flashcards | StudBud