PBMF Chapter 1

Question 1

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

Accepted Answer

Economic system

Question 2

Economic decisions are based on a society's values, culture, and customs

Accepted Answer

Traditional economy

Question 3

All the activities involved in developing and exchanging products

Accepted Answer

Business

Question 4

Something a person desires but can survive without.

Accepted Answer

Want

Question 5

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

Accepted Answer

Service

Question 6

People who start a new business

Accepted Answer

Entrepreneurs

Question 7

Customers who purchase goods and services for their own use

Accepted Answer

Consumers

Question 8

The products businesses use to produce other goods

Accepted Answer

Capital goods

Question 9

The Level of material comfort measured by the goods, services, and luxuries available.

Accepted Answer

Standard of Living

Question 10

The difference between the income earned and expense incurred by a business during a time

Accepted Answer

Profit

Question 11

An individual or group who buys products

Accepted Answer

Customer

Question 12

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

Accepted Answer

Economics

Question 13

The economic resources a nation uses to make goods and supply series for its population

Accepted Answer

Factors of Production

Question 14

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

Accepted Answer

Market economy

Question 15

Anything that can be bought or sold

Accepted Answer

Product

Question 16

Describes the characteristics of a product that satisfy wants and needs.

Accepted Answer

Utility

Question 17

Develops when demand is higher than the available resources

Accepted Answer

Scarcity

Question 18

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

Accepted Answer

Competition

Question 19

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

Accepted Answer

trade-off

Question 20

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

Accepted Answer

Market

Question 21

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

Accepted Answer

Capital

Question 22

Physical item that can be touched

Accepted Answer

Good

Question 23

Something a person must have in order to survive, such as food, clothing, and shelter.

Accepted Answer

Need

Question 24

The government makes all the economic decisions for its citizens.

Accepted Answer

Command economy

Question 25

The work performed by people in organizations

Accepted Answer

Labor

Question 26

The willingness and ability to start a new business.

Accepted Answer

Entrepreneurship

Question 27

Both the government and individuals make decisions about economic resources

Accepted Answer

Mixed economy

PBMF Chapter 1

Questions 27

PBMF Chapter 1

Questions 27