Principles of Business, Marketing, and Finance -
Chapter 1 questions with accurate answers
barter Ans✓✓✓ to exchange one good or service for another good or
service; as opposed to purchasing with cash
basic economic problem Ans✓✓✓ individuals, businesses, and
governments must constantly make choices about using limited
resources to satisfy unlimited wants
business Ans✓✓✓ all activities involved in developing and exchanging
products
capital Ans✓✓✓ all the tools, equipment, and machinery used to
produce goods and provide services
capital goods Ans✓✓✓ the products businesses use to produce other
goods (final products to be sold to customers)
capitalism Ans✓✓✓ an economic system where the economic resources
are privately owned by individuals rather than government; another
name for the US economic system
command economy Ans✓✓✓ where the government makes all the
economic decisions for its citizens; also called a centrally-planned
economy; examples include North Korea and Cuba
, competition Ans✓✓✓ the action taken by two or more businesses
attempting to attract the same customers
consumer Ans✓✓✓ customers who purchase goods and services for
their own use
customer Ans✓✓✓ an individual or group who buys products; the
customer of a service provided is often called a client; the customer of a
good is often called a consumer
economic system Ans✓✓✓ an organized way in which a nation chooses
to use its resources to create goods and services
economics Ans✓✓✓ a science that examines how goods and services
are produced, sold, and used
entrepreneur Ans✓✓✓ a person who starts a new business or purchases
an existing business
entrepreneurship Ans✓✓✓ the willingness and ability to start a new
business
Chapter 1 questions with accurate answers
barter Ans✓✓✓ to exchange one good or service for another good or
service; as opposed to purchasing with cash
basic economic problem Ans✓✓✓ individuals, businesses, and
governments must constantly make choices about using limited
resources to satisfy unlimited wants
business Ans✓✓✓ all activities involved in developing and exchanging
products
capital Ans✓✓✓ all the tools, equipment, and machinery used to
produce goods and provide services
capital goods Ans✓✓✓ the products businesses use to produce other
goods (final products to be sold to customers)
capitalism Ans✓✓✓ an economic system where the economic resources
are privately owned by individuals rather than government; another
name for the US economic system
command economy Ans✓✓✓ where the government makes all the
economic decisions for its citizens; also called a centrally-planned
economy; examples include North Korea and Cuba
, competition Ans✓✓✓ the action taken by two or more businesses
attempting to attract the same customers
consumer Ans✓✓✓ customers who purchase goods and services for
their own use
customer Ans✓✓✓ an individual or group who buys products; the
customer of a service provided is often called a client; the customer of a
good is often called a consumer
economic system Ans✓✓✓ an organized way in which a nation chooses
to use its resources to create goods and services
economics Ans✓✓✓ a science that examines how goods and services
are produced, sold, and used
entrepreneur Ans✓✓✓ a person who starts a new business or purchases
an existing business
entrepreneurship Ans✓✓✓ the willingness and ability to start a new
business
