Business Organization - Chapter 2 Test

Resources are the things necessary for making only what people need.

• True

• False

Every type of business needs labor resources to produce goods and provide services.

• True

• False

Entrepreneurial resources are different from labor resources.

• True

• False

Every society has enough productive resources to produce everything people want and need.

• True

• False

Two basic types of economic systems are a market economy and a demand economy.

• True

• False

A shortage of resources is called ______.

• reduction

• threat

• scarcity

• limitation

Scarcity occurs when _____.

• demand exceeds supply

• distribution breaks down

• conservation is at an all-time high

• consumers’ needs exceed wants

All of the following are factors of production except ______.

• educational resources

• natural resources

• labor resources

• capital resources

Some natural resources, such as wheat and cattle, are _____.

• imported

• irreplaceable

• renewable

• artificially produced

Buildings, delivery trucks, and equipment are all examples of _______.

• permanent assets

• capital resources

• short-term investments

• capital