Intro to Business - Outcome 1

What is the primary focus of economics as a social science?

• The study of government policies only

• The study of how society manages its scarce resources

• The study of business profits exclusively

• The study of stock markets only

Which of the following best describes a 'need' in economic terms?

• Something that would be nice to have

• Something that can be postponed

• Something essential for survival

• Something that brings entertainment value

What is the primary motive of most businesses?

• Creating jobs

• Serving the community

• Maximizing profits

• Environmental protection

Which factor is NOT typically considered a basic economic want?

• Entertainment

• Luxury items

• Air to breathe

• Fashion trends

The economic concept of scarcity means:

• Resources are limited compared to human wants

• Only poor people face shortages

• There isn't enough money in circulation

• Products are too expensive

What is the first step in the economic decision-making process?

• Making the final choice

• Gathering relevant information

• Implementing the decision

• Identifying the need for a decision

What drives the production decisions of businesses in a market economy?

• Random selection

• Government mandates

• Personal preferences of owners

• Consumer demand

What is the term for resources that can be used to produce goods and services?

• Capital

• Factors of production

• Economic resources

• Production assets

Scarcity in economics refers to:

• The complete absence of resources

• The limited nature of resources compared to unlimited wants

• The lack of money in an economy

• The shortage of luxury goods

Which factor of production includes machinery, tools, and buildings?

• Land

• Labor

• Capital

• Entrepreneurship