Entrepreneurship- Chapter 2 Exam Questions and Correct Answers Latest Update 2024 (Graded A+)

Entrepreneurship- Chapter 2 Exam Questions and Correct Answers Latest Update 2024 (Graded A+) Needs are things that you must have in order to survive - Answers True The role of businesses is to produce and distribute goods and services that people need and want - Answers True The most basic of needs is security - Answers False Both types of wants - economic and noneconomic - from the basis of an economy - Answers False Needs and wants are unlimited - Answers True Economic resources are not factors of production - Answers False Services must be provided to you at the time you need them - they cannot be stored - Answers True Capital resources include buildings and equipment - Answers True All economic resources have a limited supply - Answers True All business that exist in the United States today began as an entrepreneurial idea - Answers False Needs include the following except... a. food b. basic clothing c. smartphones d. a place to live - Answers c Things that you think you must have in order to be satisfied are called... a. needs b. preferences c. wants d. goals - Answers c The psychologist who developed a theory on the hierarchy of needs was... a. Sigmund Freud b. Abraham Maslow c. Karl Jung d. Terrence McKenna - Answers b According to the theory of hierarchy of needs, a. Everyone's needs will eventually be satisfied b. People must satisfy lower-level needs before than can focus on higher level needs c. Everyone has the same needs d. Needs and wants are usually the same - Answers b Earning a college degree is and example of satisfying which of the following areas of needs? a. Esteem b. Social c. Self - actualization d. Security - Answers c Products you can see and touch are called... a. All of these b. intangibles c. goods d. services - Answers c The three types of economic resources that an entrepreneur may use to create useful goods and services are called... a. Factors of production b. Production hierarchies c. Factors of consumption d. Economies of scale - Answers a Raw materials supplied by nature are... a. Monetary resources b. Capital resources c. Natural resources d. Human resources - Answers c Which of the following would not be considered a capital resource? a. Equipment b. Money need to pay employees c. Employees d. Buildings - Answers c In the US economy, entrepreneurs... a. Fulfill consumers' wants and needs b. Help change the way people live and conduct business c. Provide employment d. All of these - Answers d Entrepreneurship thrives in a market economy - Answers True The traditional economy is used in developed countries - Answers False A mixed economy often results when a country shifts away from a command economy towards a market economy - Answers True The US economic system is best described as a traditional economy - Answers False The rivalry among businesses to sell their goods and services is called competition - Answers True Two factors that commonly enter into economic decision-making is scarcity and opportunity cost - Answers True The value of the next best economic alternative is the trade-off cost - Answers False The functions of business operate independently of each other - Answers False