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Rationales
Included
,public wants wants that are shared by many people
b All of the following involve offering services except
a.
banking.
c.
sports and entertainment.
b.
DVDs.
d.
tourism.
profit The reward for satisfying the needs and wants of consumers and businesses is
competition _________ forces businesses to decide how to best use and conserve their
resources
d For businesses to stay successful, they must offer
a.
quality products.
c.
competitive prices.
b.
outstanding service.
d.
all of the above.
a When developing a product or service, a business must do all of the following
except
a.
create a need for the product or service.
b.
evaluate the demand for the product or service.
c.
obtain start-up and operating capital.
d.
keep records to satisfy government requirements.
d Market research provides information that can help a business
a.
identify opportunities.
b.
evaluate demand.
c.
respond to market goods and services.
d.
all of the above
make a profit Businesses supply goods and services to
decreasing demand for it A business may stop manufacturing a product because
there is a
will be most profitable Competition is possible because companies have the freedom to produce products
they think
, clothing The basic needs of people include food, water, shelter and
needs businesses provide goods and services to satisfy wants and
b All of the following are resources except
a.
money.
c.
fuel.
b.
transportation.
d.
labor.
competition The contest among businesses to win customers is called
d To avoid failure, a business can modify
a.
its products.
c.
its business practices.
b.
its services.
d.
all of the above
scarcity A shortage of resources is called
demand exceeds supply Scarcity occurs when
a All of the following are factors of production except
a.
educational resources.
c.
labor resources.
b.
natural resources.
d.
capital resources.
renewable Some natural resources, such as wheat and cattle, are
capital resources Buildings, delivery trucks, and equipment are all examples of
entrepreneurial Of the four factors of production, the resource that must adapt to meet society's
changing wants and needs is
opportunity cost Deciding to use a resource for one purpose and giving up the chance to use it for
something else is