Chapter 2 - Entrepreneurs in the Market Economy

Another name for economic resources is

If a product has inelastic demand, a price increase will cause

Which of the following is NOT an example of a service?

The quantity of a good or service that consumers will buy at a given price

When a change in price creates a change in demand, you have

Occurs when people's needs & wants are unlimited but the resources to produce them are limited

Marginal cost measures the advantages of producing one additional unit

Division of labor occurs when individual workers focus on single tasks to be more efficient

Which of the following is NOT a function of business

Things that you think you must have in order to be satisfied are known as needs.

An example of a noneconomic want is

The process of choosing which needs & wants you will satisfy with the resources you have

The value of the next-best alternative-the one you pass up

The point at which supply and demand meet

Which of these is not one of the 4 basic principles of the U.S. economic system

The means through which goods & services are produced is known as economies of scale

Costs that go up & down depending on quantity of the good/service produced

What determines the type of economic system a country has?

Private ownership of resources by the government rather than individuals is known as capitalism

The government determines what, how, and for whom goods are produced in a comman economy