Understanding Business and Economics

Front

What is the main purpose of a business?

Back

To make a profit by satisfying needs and wants

Front

Which of the following is NOT one of the four factors of production? Land, Labor, Money, Entrepreneurship

Back

Money

Front

Which factor of production refers to people working to produce goods and services?

Back

Labor

Front

What is the role of capital in production?

Back

Tools, machines, and buildings used to make goods

Front

Which of the following best describes entrepreneurship? The money used to buy goods, The natural resources found in an area, The ability to start and run a business, The number of workers in a company

Back

The ability to start and run a business

Front

Which of these is a key question every economy must answer?
Options:
Who will be president?
What goods and services should be produced?
How many schools should be built?
Where should people live?

Back

What goods and services should be produced?

Front

In capitalism, who usually owns the businesses?

Back

Private individuals

Front

What determines prices in a capitalist economy?

Back

Supply and demand

Front

Which of the following is an example of land as a factor of production? A computer, A factory worker, A forest, A business plan

Back

A forest

Front

Which of the following best describes the role of government in capitalism? Controls all businesses, Makes all economic decisions, Sets some rules but lets markets decide most things, Owns all land

Back

Sets some rules but lets markets decide most things