1.3 Economics Basics

What is a good?

• A task you pay someone to do

• Something that cannot be felt by touch

• Anything that satisfies a person’s wants or brings satisfaction

• Something that can be felt by touch

Which of the following is an example of an intangible item?

• A book

• A computer

• A service

• A chair

Which of the following is an example of a good?

• A haircut

• A car

• A software

• A consultation

What is the main difference between a good and a service?

• Goods are tangible, services are intangible

• Goods are intangible, services are tangible

• Goods are tasks, services are products

• Goods are services, services are goods

Which of the following is a characteristic of a good?

• Intangible

• Cannot be felt by touch

• Satisfies a person’s wants or brings satisfaction

• A task you pay someone to do

What term is used to describe something that brings unhappiness?

• Utility

• Futility

• Disutility

• Liability

Goods and services cannot be produced without what?

• Money

• Resources

• Technology

• Time

What does entrepreneurship create?

• New government policies

• New business opportunities, new products, and/or new ways of doing things

• New educational programs

• New environmental regulations

Which of the following is NOT a characteristic of capital?

• It is produced goods

• It can be used as resources for further production

• It is a natural resource

• It is essential for production

Which of the following best describes entrepreneurship?

• The management of financial assets

• The creation of new business opportunities, products, and/or new ways of doing things

• The production of goods and services

• The consumption of goods and services