Chapter 1 Introduction to Business & Economics Review

Question 1

When demand is higher than the available resources.

Accepted Answer

scarcity

Question 2

Anywhere a business exchange takes place.

Accepted Answer

market

Question 3

Organized way in which a nation chooses to use its resources to create goods and services.

Accepted Answer

economic system

Question 4

Economy in which individuals are free to make their own economic decisions.

Accepted Answer

market economy

Question 5

Actions taken by two or more businesses attempting to attract the same customers.

Accepted Answer

competition

Question 6

A(n) _____ is something a person must have to survive.

Accepted Answer

need

Question 7

Term for all the activities involved in developing and exchanging products.

Accepted Answer

business

Question 8

When demand for a product becomes greater than available supply, a(n) _____ develops.

Accepted Answer

shortage

Question 9

Action or task that is performed, usually for a fee.

Accepted Answer

service

Question 10

Utility describes the characteristics of a product that satisfy _______.

Accepted Answer

Capitalism

Question 11

Products are commonly known as _________.

Accepted Answer

goods and services

Question 12

Physical item that can be touched.

Accepted Answer

good

Question 13

All the tools, equipment, and machinery used to produce goods or provide services.

Accepted Answer

capital

Question 14

An individual or group that buys products.

Accepted Answer

customer

Question 15

Economy in which economic decisions are based on a society’s values, culture, and customs.

Accepted Answer

traditional economy

Question 16

The driving force in choosing to start a business is _________.

Accepted Answer

profit

Question 17

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

Accepted Answer

supply equals demand

Question 18

Value of the next best option that was not selected.

Accepted Answer

opportunity cost

Question 19

Customers who purchase goods and services for their own use.

Accepted Answer

consumer

Question 20

Anything that can be bought or sold.

Accepted Answer

product

Question 21

Characteristics of a product that satisfy wants and needs.

Accepted Answer

utility

Question 22

The customer of a service business is often called a

Accepted Answer

client

Question 23

A tractor is an example of ________.

Accepted Answer

Capital

Question 24

Economy in which the government makes all the economic decisions for its citizens.

Accepted Answer

command economy

Question 25

Difference between the income earned and expenses incurred by a business.

Accepted Answer

profit

Question 26

Work performed by people in organization, also called human resource.

Accepted Answer

labor

Question 27

The price of a product is determined by the relationship of the supply and the demand.

Accepted Answer

law of supply and demand

Question 28

Economic resources a nation uses to make goods and supply services for its population.

Accepted Answer

factors of production

Question 29

Willingness and ability to start a new business.

Accepted Answer

entrepreneurship

Question 30

Products businesses use to produce other goods.

Accepted Answer

capital goods

Chapter 1 Introduction to Business & Economics Review

Questions 30

Chapter 1 Introduction to Business & Economics Review

Questions 30