POB - Chapter 1 and 2 Review

Question 1

The willingness and ability to start a new business is Entrepreneurship?

Accepted Answer

True

Question 2

The basic economic problem is consumers have limited $$$$ to meet an unlimited number of needs.

Accepted Answer

True

Question 3

Alternating periods of expansion and contraction in an economy

Accepted Answer

Business Cycle

Question 4

When supply of a product exceeds demand a ______ develops.

Accepted Answer

surplus

Question 5

Entrepreneurs take risks to start and run ____

Accepted Answer

businesses

Question 6

When demand for a product becomes greater than the available supply a(n) _______ develops.

Accepted Answer

shortage

Question 7

The government makes all of the decisions for its citizens in a ______ economy

Accepted Answer

Command

Question 8

An action or task that can be performed, usually for a fee.

Accepted Answer

Service

Question 9

Science that examines how goods and services are produced, sold, and used.

Accepted Answer

Economics

Question 10

What is the central bank of the United States?

Accepted Answer

Federal Reserve

Question 11

Which of the following is not one of the four functions of business?

Accepted Answer

Sales

Question 12

When two or more businesses agree to sell the same good or service at the same price

Accepted Answer

Price fixing

Question 13

What type of economy are most countries in the world (including the US)?

Accepted Answer

Mixed Economy

Question 14

The quantity of a product or service that consumers are willing to buy

Accepted Answer

demand

Question 15

Laws that promote fair trade and competition are known as ______________ laws.

Accepted Answer

antitrust

Question 16

Which approach would be best for a young business with an innovative new product?

Accepted Answer

Non-price competition

Question 17

The difference between sales income earned and costs is _______

Accepted Answer

Profit

Question 18

Period of economic contraction that is severe and lasts a long time

Accepted Answer

depression

Question 19

In a _________ economy, individuals are free to make their own economic decisions.

Accepted Answer

market

Question 20

Which is not one of the four basic market structures.

Accepted Answer

Competitive Parity

Question 21

The market value of all final products produced in a country during a specific period of time

Accepted Answer

GDP (Gross Domestic Product)

Question 22

Fiscal policy involves _____ decisions made by the government

Accepted Answer

taxing and spending

Question 23

One business has complete control of a market’s entire supply of goods or services

Accepted Answer

Monopoly

Question 24

Something that a person must have in order to survive.

Accepted Answer

Need

Question 25

A type of product that is intangible; customers for this product are often called clients.

Accepted Answer

Service

Question 26

Market structure: a large number of businesses selling the same product at the same prices

Accepted Answer

Perfect Competition

Question 27

Tax and spending decisions made by the president and Congress are known as the monetary policy.

Accepted Answer

False

Question 28

Which is NOT one of the main ways that a government monitors their economic health?

Accepted Answer

Tax Rate

Question 29

Which of the following is not a role of government in an economy

Accepted Answer

Promote monopolies

Question 30

A general rise in prices throughout an economy is called ___

Accepted Answer

inflation

Question 31

The market price for a product is determined at a point where ___________.

Accepted Answer

demand meets supply

Question 32

The value of the next best option that was not selected.

Accepted Answer

opportunity cost

Question 33

Which is not a market force that impacts business?

Accepted Answer

consumerism

Question 34

The peak of a business cycle marks the ____

Accepted Answer

end of an expansion

Question 35

Certificate of debt issued by a government or organization - returns principal plus interest

Accepted Answer

bond

Question 36

Which type of spending is not a component of gross domestic product (GDP)?

Accepted Answer

foreign

Question 37

All the tools, machinery, and equipment that a country uses to produce other goods.

Accepted Answer

Capital Resources

Question 38

When a lower price is the main factor for customers to buy from one business over another.

Accepted Answer

price competition

Question 39

Which of the following represents ownership in a company?

Accepted Answer

stock

Question 40

In the picture the blue line is a graph of ______

Accepted Answer

Supply

Question 41

Which of the following is an example of a public good?

Accepted Answer

A road

POB - Chapter 1 and 2 Review

Questions 41

POB - Chapter 1 and 2 Review

Questions 41