POB - Chapter 1 Test

Question 1

Money earned in exchange for work.

Accepted Answer

wages

Question 2

A physical item that can be touched.

Accepted Answer

good

Question 3

The four economic systems are traditional economy, command economy, market economy, and mixed economy.

Accepted Answer

True

Question 4

Identify three market forces that impact business.

Accepted Answer

supply and demand, the profit motive, and competition

Question 5

The ___________ of business are production, finance, marketing and management.

Accepted Answer

functions

Question 6

The main reason a business operates is to

Accepted Answer

earn a profit

Question 7

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

Accepted Answer

economic system

Question 8

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

Accepted Answer

economics

Question 9

Term for all the activities involved in developing and exchanging products

Accepted Answer

business

Question 10

Economy in which individuals are free to make their own economic decisions, aka: free enterprise or private enterprise.

Accepted Answer

capitalism

Question 11

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

Accepted Answer

factors of production

Question 12

What are the 4 factors of production?

Accepted Answer

land, labor, capital, and entrepreneurs

Question 13

Market Forces are economic factors that affect the price, demand, and availability of a product or service.

Accepted Answer

True

Question 14

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

Accepted Answer

labor

Question 15

Products businesses use to produce other goods.

Accepted Answer

capital goods

Question 16

Something that a person desires, but can survive without.

Accepted Answer

want

Question 17

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

Accepted Answer

capital

Question 18

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

Accepted Answer

competition

Question 19

Individual or group who buys products

Accepted Answer

customer

Question 20

There are 3 benefits generated by businesses in an economy.

Accepted Answer

employment, standard of living, and taxes

Question 21

When demand is higher than the available resources.

Accepted Answer

scarcity

Question 22

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

Accepted Answer

command economy

Question 23

Anything that can be bought or sold.

Accepted Answer

Product

Question 24

Economy in which both the government and individuals make decisions about economic resources.

Accepted Answer

mixed economy

Question 25

A customer who purchases goods and services for their own use

Accepted Answer

consumer

Question 26

A consumer market includes customers who buy products for their own use.

Accepted Answer

True

Question 27

What are the three market forces that impact business?

Accepted Answer

supply and demand, the profit motive, and competition

Question 28

What are economic factors that affect the price, demand, and availability of a product or service?

Accepted Answer

Market Forces

Question 29

Anywhere buyers and sellers meet to buy and sell goods and services.

Accepted Answer

market

Question 30

There are five types of utility provided by businesses. Form, place, time, information, and the last is?

Accepted Answer

possession

Question 31

When something is given up in order to gain something else.

Accepted Answer

trade-off

Question 32

Willingness and ability to start a new business.

Accepted Answer

entrepreneurship

Question 33

___________ are economic factors that affect the price, demand, and availability of a product or service.

Accepted Answer

Market forces

POB - Chapter 1 Test

Questions 33

POB - Chapter 1 Test

Questions 33