Business Activity - Chapter 1

Which of the below is NOT a factor of production?

• Capital

• Enterprise

• Government

• Land

What is meant by 'capital'?

• Machinery

• Machinery and finance

• Money or finance

• Human effort

What is the correct definition of 'scarcity'?

• Scarcity is the fact that people have way too many needs and wants

• Not having workers to make products and/or services

• Having too many resources

• Not having enough products to satisfy a populations' wants and/or needs

What is an advantage of specialization?

• Better quality of products and services

• Reduced cost for companies

• Faster production of products and services

• All answers are correct

Which of the below is an example of a need?

• Shelter

• A watch

• Going to school

• A car

The next best alternative given up, by choosing another item.

This is a definition of _____ ?

• Scarcity

• Opportunity cost

• The economic problem

• Factors of production

What is the most important quality in an entrepreneur?

• Ability to work long hours

• Physical strength

• Passion

• Risk-taking

What is the correct definition of the economic problem?

• Unlimited wants but limited resources to produce products and services

• Limited wants and limited resources to produce products and services

• Unlimited wants and unlimited resources to produce products and services

• Limited needs but unlimited wants

Entrepreneurship earns ___________.

• Interest

• Profit

• Wages

• Rent

The work time and work effort that people devote to producing goods and services is __________.

• Labor

• Land

• Capital

• Rent