INTRO TO BUSINESS CHAPTER 1 - 4
TEST QUESTIONS AND ANSWERS
Resources8-8ans-The8amount8of8stuff8a8company/country8has
Profit8-8ans-$$
$8left8over8after8a8business8has8paid8the8cost8of8providing8its8goods8and8serv
ices
Competition8-8ans-Contest8between8businesses8to8win8customers
Goods8-8ans-A8physical8object8that8the8Company/government8provides
Service8-8ans-A8physical8thing8that8a8company/government8does
Market8Research8-8ans-
the8action8or8activity8of8gathering8information8about8consumers'8needs8and8pref
erences.
Consumer8-8ans-Someone8who8is8buying8the8service8or8good
Decision8making8process8-8ans-Step818-8Identify8the8situation
Step828-8Identify8possible8courses8of8action
Step838-8Determine8Pros8and8Cons
Step848-8Make8a8Decision
Step858-8Evaluate8your8decision
How8and8why8profit8motivates8businesses8-8ans-
Profit8motivates8businesses8because8it's8provides8a8business8with8survival8and8
prosperity
Activities8businesses8undertake8when8developing8products8and8services8-8ans-
Identify8Opportunities
Is8there8demand?
Secure8capital
Manage8production
Market8the8product8or8service
Keep8detailed8records8for8IRS8and8to8improve8processes.
Scarcity8-8ans-A8shortage8of8resources
Factors8of8Production8-8ans-Natural8Resources
, Labor8Resources
Capital8Resources
Entrepreneurial8Resources
Natural8Resources8-8ans-
Raw8materials8from8nature8used8to8produce8goods8such8as8Trees,8water8and8
grains
Labor8Resources8-8ans-work8from8other8people
Capital8Resources8-8ans-All8the8things8needed8to8create8good8&8services
Entrepreneur8-8ans-
Individuals8who8start8and8direct8businesses8to8produce8goods8and8services8to8
satisfy8needs8or8wants.
Economics8-8ans-Methods8societies8use8to8distribute8resources.
Market8Economy8-8ans-
Buyer8&8Sellers,8Private8Enterprise,8Capitalism,8Incentivized
Command8Economy8-8ans-
Government8controlled8&8government8owned.8Communism8&8Socialism
Demand8-8ans-Amount8consumers8are8willing8to8buy8at8given8prices
Equilibrium8Price8-8ans-
the8point8at8which8the8quantity8demanded8and8the8quantity8supplied8meet.
Mixed8Economy8-8ans-Mix8of8both8market8&8command.
Scarcity8and8its8effects8on8a8nation's8decisions8-8ans-
Companies8wont8have8enough8resources8to8continue8their8business
GDP:8-8ans-
The8total8value8of8the8good8and8services8produced8in8a8country8in8a8given8ye
ar.
Standard8of8Living8-8ans-
Measures8the8amount8of8goods8and8services8people8can8buy8with8the8money8t
hey8have.
Inflation8-8ans-general8increase8in8the8price8of8goods8and8services.
Deflation8-8ans-decrease8in8the8price8of8goods8and8services.
TEST QUESTIONS AND ANSWERS
Resources8-8ans-The8amount8of8stuff8a8company/country8has
Profit8-8ans-$$
$8left8over8after8a8business8has8paid8the8cost8of8providing8its8goods8and8serv
ices
Competition8-8ans-Contest8between8businesses8to8win8customers
Goods8-8ans-A8physical8object8that8the8Company/government8provides
Service8-8ans-A8physical8thing8that8a8company/government8does
Market8Research8-8ans-
the8action8or8activity8of8gathering8information8about8consumers'8needs8and8pref
erences.
Consumer8-8ans-Someone8who8is8buying8the8service8or8good
Decision8making8process8-8ans-Step818-8Identify8the8situation
Step828-8Identify8possible8courses8of8action
Step838-8Determine8Pros8and8Cons
Step848-8Make8a8Decision
Step858-8Evaluate8your8decision
How8and8why8profit8motivates8businesses8-8ans-
Profit8motivates8businesses8because8it's8provides8a8business8with8survival8and8
prosperity
Activities8businesses8undertake8when8developing8products8and8services8-8ans-
Identify8Opportunities
Is8there8demand?
Secure8capital
Manage8production
Market8the8product8or8service
Keep8detailed8records8for8IRS8and8to8improve8processes.
Scarcity8-8ans-A8shortage8of8resources
Factors8of8Production8-8ans-Natural8Resources
, Labor8Resources
Capital8Resources
Entrepreneurial8Resources
Natural8Resources8-8ans-
Raw8materials8from8nature8used8to8produce8goods8such8as8Trees,8water8and8
grains
Labor8Resources8-8ans-work8from8other8people
Capital8Resources8-8ans-All8the8things8needed8to8create8good8&8services
Entrepreneur8-8ans-
Individuals8who8start8and8direct8businesses8to8produce8goods8and8services8to8
satisfy8needs8or8wants.
Economics8-8ans-Methods8societies8use8to8distribute8resources.
Market8Economy8-8ans-
Buyer8&8Sellers,8Private8Enterprise,8Capitalism,8Incentivized
Command8Economy8-8ans-
Government8controlled8&8government8owned.8Communism8&8Socialism
Demand8-8ans-Amount8consumers8are8willing8to8buy8at8given8prices
Equilibrium8Price8-8ans-
the8point8at8which8the8quantity8demanded8and8the8quantity8supplied8meet.
Mixed8Economy8-8ans-Mix8of8both8market8&8command.
Scarcity8and8its8effects8on8a8nation's8decisions8-8ans-
Companies8wont8have8enough8resources8to8continue8their8business
GDP:8-8ans-
The8total8value8of8the8good8and8services8produced8in8a8country8in8a8given8ye
ar.
Standard8of8Living8-8ans-
Measures8the8amount8of8goods8and8services8people8can8buy8with8the8money8t
hey8have.
Inflation8-8ans-general8increase8in8the8price8of8goods8and8services.
Deflation8-8ans-decrease8in8the8price8of8goods8and8services.
