Business Econ - Unit 1 Review

Question 1

You learn that you should have to get an expensive license for your business, and you cannot afford it. Should you

Accepted Answer

Pivot

Question 2

Which of the following goals is NOT one of the seven goals of the market economy?

Accepted Answer

equal pay

Question 3

How do consumers demonstrate diminishing marginal utility?

Accepted Answer

by decreasing the amount they are willing to pay for additional goods

Question 4

This is if there are not enough goods, services, and resources available for everyone to have everything.

Accepted Answer

scarcity

Question 5

When a business decides to focus its efforts on producing only a few goods, the business is

Accepted Answer

specializing to keep costs down

Question 6

To figure out a nation's comparative advantage, you compare their ___ to other entities.

Accepted Answer

opportunity cost

Question 7

When setting up a budget, the first step is

Accepted Answer

mapping out your consumption

Question 8

Which of the following will likely cause businesses to cut back on production of their goods or services?

Accepted Answer

Higher wages

Question 9

Why are entrepreneurs important to the economy as a whole?

Accepted Answer

They generate innovative solutions to problems faced by consumers.

Question 10

Which type of economy relies on social customs to answer the economic questions of the nation?

Accepted Answer

traditional economy

Question 11

A simple definition of economics is that it is the science of

Accepted Answer

decision-making

Question 12

Why are small businesses considered by economists to drive the US economy?

Accepted Answer

They are more able to quickly respond to market needs.

Question 13

The term opportunity cost is best described as something that

Accepted Answer

a person gives up when a choice is made

Question 14

You learn that there are already several companies selling a product very similar to yours. Should you

Accepted Answer

Pivot

Question 15

Which of these is NOT one of three basic concepts all economic systems must address?

Accepted Answer

what prices government will charge for goods and services

Question 16

When a business has no more competition,

Accepted Answer

prices go up

Question 17

Your market research shows that very few people are willing to pay for your product. Should you

Accepted Answer

Pivot

Question 18

Managers, technical trainers, and accountants are what type of productive resource?

Accepted Answer

human resources

Question 19

Which of these is the most common form of business in the United States?

Accepted Answer

Sole proprietorship

Question 20

Which economic system best explains why rational people would satisfy their needs before satisfying their wants?

Accepted Answer

scarcity

Question 21

An advantage of a free market economy is that

Accepted Answer

the market is very responsive to the needs and wanst of people

Question 22

Iron ore, timber, and crude oil are what type of productive resource?

Accepted Answer

natural/land

Question 23

An advantage of a command economy is that

Accepted Answer

In theory, everyone receives a relatively equal allocation of resources

Question 24

Factory buildings, assembly line equipment, telephone equipment are what type of productive resource?

Accepted Answer

capital

Question 25

You cannot find anyone else who offers a similar service to yours. Should you

Accepted Answer

Persevere

Business Econ - Unit 1 Review

Questions 25

Business Econ - Unit 1 Review

Questions 25