GEB 1011 EXAM 1 CHAPTER 1-5 Questions with
Correct Answers
Profit Correct Answer-what remains after all business expenses have
been deducted from sales revenue
Business Correct Answer-The organized effort of individuals to produce
and sell, for a profit, the goods and services that satisfy society's needs
Entrepreneur Correct Answer-is a person who risks his or her time,
effort, and money to start and operate a business.
Supply Curve Correct Answer-graphical representation of the
relationship between the price of a good or service and the quantity
supplied for a given period of time. In a typical representation, the price
will appear on the left vertical axis, the quantity supplied on the
horizontal axis.
Demand Curve Correct Answer-a graph showing how the demand for a
commodity or service varies with changes in its price.
Factors of Production Correct Answer-resources used to produce goods
and services.
land and natural resources
labor
capital
entrepreneurship
, Economic Models Correct Answer-Capitalism
Socialism
Communism
Capitalism Correct Answer-Individuals:
Own and operate the majority of businesses that provide goods and
services.
Privately own resources.
Decide what to buy.
The market drives supply
and price.
Role of
government
is limited.
Socialism Correct Answer-Government:
Decides what will be produced,
how it will be produced, and who
owns and controls the factors
of production.
Owns and controls key industries.
Workers may choose their own occupations.
Correct Answers
Profit Correct Answer-what remains after all business expenses have
been deducted from sales revenue
Business Correct Answer-The organized effort of individuals to produce
and sell, for a profit, the goods and services that satisfy society's needs
Entrepreneur Correct Answer-is a person who risks his or her time,
effort, and money to start and operate a business.
Supply Curve Correct Answer-graphical representation of the
relationship between the price of a good or service and the quantity
supplied for a given period of time. In a typical representation, the price
will appear on the left vertical axis, the quantity supplied on the
horizontal axis.
Demand Curve Correct Answer-a graph showing how the demand for a
commodity or service varies with changes in its price.
Factors of Production Correct Answer-resources used to produce goods
and services.
land and natural resources
labor
capital
entrepreneurship
, Economic Models Correct Answer-Capitalism
Socialism
Communism
Capitalism Correct Answer-Individuals:
Own and operate the majority of businesses that provide goods and
services.
Privately own resources.
Decide what to buy.
The market drives supply
and price.
Role of
government
is limited.
Socialism Correct Answer-Government:
Decides what will be produced,
how it will be produced, and who
owns and controls the factors
of production.
Owns and controls key industries.
Workers may choose their own occupations.
