PBA Final Exam 2025 – Study Guide & Comprehensive
Review
A firm is a group of people who uses ____________ _____________to achieve a common
objective. They use these resources in an _____________way. There is also a difference
between perceived quality and intrinsic quality. We make 90% of our decisions based upon
_______________ quality. - correct answer ✔✔ limited resources; efficient; perceived
To earn a profit, a business needs ___________ ____________to plan, organize, and control its
activities and to find and develop employees so that it can make products that consumers will
buy. - correct answer ✔✔ management skills
What 3 skills does a business need to help reach their goals? - correct answer ✔✔ -
management
- marketing
- finance
Definition of Economics. - correct answer ✔✔ The study of how resources are distributed for
the production of goods and services within a social system.
What type of resources are also called factors of production because they are used to make
goods and services? - correct answer ✔✔ Financial resources
Define Economic systems - correct answer ✔✔ how a particular society distributes its resources
to produce goods and services.
What three important issues must all economic systems address? - correct answer ✔✔ 1.
SATISFACTION: What goods and services to use and how much of each will satisfy consumers'
needs?
, 2. PRODUCTION: How will the goods and services be produced, and who will produce them and
with what resources?
3. DISTRIBUTION: How are the goods and services to be distributed to consumers?
________________was first described by Karl Marx as an economic system in which the people,
without regard to class, own all the nation's resources. - correct answer ✔✔ Communism
In a ______________economy, central government planning determines what goods and
services will satisfy citizens' needs, how the goods and services will be produced, and how they
will be distributed. - correct answer ✔✔ communist
_________________: is an economic system in which the government owns and operates basic
industries, but individuals own most of the other businesses. - correct answer ✔✔ Socialism
_____________ is an economic system in which individuals own and operate the majority of
businesses that provide goods and services. - correct answer ✔✔ Capitalism (a free enterprise
system)
In capitalism, what determines the answers to the three basic economic questions? - correct
answer ✔✔ Competition, supply and demand
For a system to truly be a free enterprise system, four conditions must be met: - correct answer
✔✔ - Property rights
- Free use and earning of profits
- Free determination of how one's business operates
- Free choice of career
In pure competition, each seller is a price "___________" rather than a price "___________" -
correct answer ✔✔ taker; maker
Review
A firm is a group of people who uses ____________ _____________to achieve a common
objective. They use these resources in an _____________way. There is also a difference
between perceived quality and intrinsic quality. We make 90% of our decisions based upon
_______________ quality. - correct answer ✔✔ limited resources; efficient; perceived
To earn a profit, a business needs ___________ ____________to plan, organize, and control its
activities and to find and develop employees so that it can make products that consumers will
buy. - correct answer ✔✔ management skills
What 3 skills does a business need to help reach their goals? - correct answer ✔✔ -
management
- marketing
- finance
Definition of Economics. - correct answer ✔✔ The study of how resources are distributed for
the production of goods and services within a social system.
What type of resources are also called factors of production because they are used to make
goods and services? - correct answer ✔✔ Financial resources
Define Economic systems - correct answer ✔✔ how a particular society distributes its resources
to produce goods and services.
What three important issues must all economic systems address? - correct answer ✔✔ 1.
SATISFACTION: What goods and services to use and how much of each will satisfy consumers'
needs?
, 2. PRODUCTION: How will the goods and services be produced, and who will produce them and
with what resources?
3. DISTRIBUTION: How are the goods and services to be distributed to consumers?
________________was first described by Karl Marx as an economic system in which the people,
without regard to class, own all the nation's resources. - correct answer ✔✔ Communism
In a ______________economy, central government planning determines what goods and
services will satisfy citizens' needs, how the goods and services will be produced, and how they
will be distributed. - correct answer ✔✔ communist
_________________: is an economic system in which the government owns and operates basic
industries, but individuals own most of the other businesses. - correct answer ✔✔ Socialism
_____________ is an economic system in which individuals own and operate the majority of
businesses that provide goods and services. - correct answer ✔✔ Capitalism (a free enterprise
system)
In capitalism, what determines the answers to the three basic economic questions? - correct
answer ✔✔ Competition, supply and demand
For a system to truly be a free enterprise system, four conditions must be met: - correct answer
✔✔ - Property rights
- Free use and earning of profits
- Free determination of how one's business operates
- Free choice of career
In pure competition, each seller is a price "___________" rather than a price "___________" -
correct answer ✔✔ taker; maker
