Introduction to Business

Chapter 2: Economic Resources and Systems

Chapter Practice Review Quizzes

What is scarcity?
A)unlimited wants and needs
B)a shortage of resources
C)a lack of goods and services
D)limited expenses
Which is NOT a factor of production?
A)natural resources
D)the marketplace
Which statement about natural resources is true?
A)Water is renewable because it can be reproduced.
B)Lumber is not renewable because it takes a long time to grow new trees.
C)Coal is renewable because there is so much of it still in the ground.
D)Agricultural products are renewable because new crops can be grown each season.
Which statement about natural resources is NOT true?
A)Natural resources can be processed to make goods.
B)The amount of natural resources available to a society has little effect on its economy.
C)Synthetic materials such as nylon can be made from natural resources.
D)Countries that have scarce natural resources must get them from somewhere else.
Which means the same as human resources?
A)capital resources
B)service providers
C)labor resources
D)unskilled workers
Which is an example of a capital resource?
A)a machine used to make molded plastic toys
B)a customer service representative
C)money borrowed from a bank
D)the president of a company
Which is most likely to profit from society's changing wants and needs?
A)a business with existing capital resources
B)a producer of goods
C)an entrepreneur
D)a business with substantial labor resources.
Which refers to how people satisfy their needs and wants by making choices?
What is opportunity cost?
A)the income people receive by taking risks
B)giving up the chance to use a resource for one thing instead of another
C)the methods and labor used to produce a good
D)the income people have to purchase goods and services
What are two basic types of economic systems?
A)supply and demand
B)competition and profit
C)private enterprise and free enterprise
D)market economy and command economy
Which is a characteristic of capitalism?
A)Resources are privately owned.
B)Resources are shared equally.
C)There is an even distribution of income.
D)Prices are determined by government planners.
Which is true about people working in a market economy who have labor skills that are in demand?
A)Their earnings are the same as other workers their age.
B)Their incomes tend to be lower than others whose skills are not in demand.
C)Their incomes tend to be higher than others whose skills are not in demand.
D)Their earnings are not related to demand.
Which is most important in determining the price of a product or service?
A)profit and competition
B)business owners' preferences
C)equilibrium pricing
D)supply and demand
Which is most likely to happen when the price for a good or service is high?
A)demand falls
B)profits rise
C)supply increases
D)competition decreases
Which is a characteristic of socialism?
A)Individuals own all major resources.
B)Major industries are government owned.
C)There is little choice for consumers.
D)There is no incentive to create better products.
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