Principles of Business
Management and
Administration
Needs - ✔ CORRECT ANSWER ✓✓things that are required in order to live
Wants - ✔ CORRECT ANSWER ✓✓things that add comfort and pleasure to your life
Goods - ✔ CORRECT ANSWER ✓✓things that you can see and touch
Services - ✔ CORRECT ANSWER ✓✓activities provided for the satisfaction of others that are
consumed at the same time they are produced
Scarcity - ✔ CORRECT ANSWER ✓✓not having enough resources to satisfy every need
Economic Resources - ✔ CORRECT ANSWER ✓✓the things available to be used to produce
goods and services
Opportunity cost - ✔ CORRECT ANSWER ✓✓the value of the next best alternative that you
could not choose
Economic system - ✔ CORRECT ANSWER ✓✓the method a country uses to answer the "3
economic questions"
, The 3 Essential Questions of business - ✔ CORRECT ANSWER ✓✓What to produce? How to
produce it? What needs and wants to satisfy?
Command economy - ✔ CORRECT ANSWER ✓✓resources are owned and controlled by the
government
Market economy - ✔ CORRECT ANSWER ✓✓resources are owned and controlled by the people
Traditional economy - ✔ CORRECT ANSWER ✓✓goods and services are produced the way they
have always been produced throughout history
Mixed economy - ✔ CORRECT ANSWER ✓✓combines the ownership control elements of both
command and market resources
Capitalism - ✔ CORRECT ANSWER ✓✓private ownership of economic resources by individuals,
not the government; free enterprise
The 4 Principles of US Capitalism - ✔ CORRECT ANSWER ✓✓Private Property, Freedom of
Choice, Profit, Competition
Consumer - ✔ CORRECT ANSWER ✓✓a person who buys and uses goods and services
Producer - ✔ CORRECT ANSWER ✓✓an individual or organization that determines what
products and services to sell
Demand - ✔ CORRECT ANSWER ✓✓the quantity of goods or services that consumers are willing
and able to buy
Management and
Administration
Needs - ✔ CORRECT ANSWER ✓✓things that are required in order to live
Wants - ✔ CORRECT ANSWER ✓✓things that add comfort and pleasure to your life
Goods - ✔ CORRECT ANSWER ✓✓things that you can see and touch
Services - ✔ CORRECT ANSWER ✓✓activities provided for the satisfaction of others that are
consumed at the same time they are produced
Scarcity - ✔ CORRECT ANSWER ✓✓not having enough resources to satisfy every need
Economic Resources - ✔ CORRECT ANSWER ✓✓the things available to be used to produce
goods and services
Opportunity cost - ✔ CORRECT ANSWER ✓✓the value of the next best alternative that you
could not choose
Economic system - ✔ CORRECT ANSWER ✓✓the method a country uses to answer the "3
economic questions"
, The 3 Essential Questions of business - ✔ CORRECT ANSWER ✓✓What to produce? How to
produce it? What needs and wants to satisfy?
Command economy - ✔ CORRECT ANSWER ✓✓resources are owned and controlled by the
government
Market economy - ✔ CORRECT ANSWER ✓✓resources are owned and controlled by the people
Traditional economy - ✔ CORRECT ANSWER ✓✓goods and services are produced the way they
have always been produced throughout history
Mixed economy - ✔ CORRECT ANSWER ✓✓combines the ownership control elements of both
command and market resources
Capitalism - ✔ CORRECT ANSWER ✓✓private ownership of economic resources by individuals,
not the government; free enterprise
The 4 Principles of US Capitalism - ✔ CORRECT ANSWER ✓✓Private Property, Freedom of
Choice, Profit, Competition
Consumer - ✔ CORRECT ANSWER ✓✓a person who buys and uses goods and services
Producer - ✔ CORRECT ANSWER ✓✓an individual or organization that determines what
products and services to sell
Demand - ✔ CORRECT ANSWER ✓✓the quantity of goods or services that consumers are willing
and able to buy
