intro to business ch. 1

What is the study of how goods and services are produced, sold, and used?

• Marketing

• Economics

• Sociology

• Psychology

Who is considered a customer?

• A person who sells a product

• An individual or group that buys a product

• A manager of a business

• A supplier of raw materials

What is a market?

• A place where only sellers meet

• A location for storing goods

• Anywhere buyers and sellers meet to buy and sell goods

• A type of financial institution

What does scarcity refer to?

• When supply is higher than demand

• When demand is higher than available resources

• When resources are abundant

• When prices are stable

What is a product?

• A service provided for free

• Anything that can be bought or sold

• A type of business strategy

• A financial asset

What is profit?

• The total revenue of a business

• The difference between income earned and expenses incurred by a business during the year

• The amount of money spent on production

• The total cost of goods sold

What is capitalism?

• A system where the government controls all resources

• An economic system that is private and free

• A type of social welfare system

• A form of communism

What are factors of production?

• The total number of goods produced

• Economic resources a nation uses to make goods and supply services for its production

• The amount of labor available

• The level of technology in a country

What is a service?

• A tangible product

• An action performed for a fee

• A type of financial investment

• A physical item

What is the difference between goods and services?

• Goods are actions; services are physical items

• Goods are physical items; services are actions

• Goods are intangible; services are tangible

• Goods are always more expensive than services