Which of the following is the best definition of economics?
a. Economics is the study of how to manage corporations to generate the greatest return on shareholder investment.
b. Economics is the study of how to manage city and country government to generate the greatest good to its citizens.
c. Economics is the study of how society chooses to allocate its scarce resources.
d. Economics is the study of how to track revenues and costs within a business.
QUESTION 2Labor resources:
a. include only physical activities.
b. are only counted as a resource if used in the production of other resources.
c. include only skilled labor.
d. include both physical and mental activities.
e. include human effort involved in the production of goods, but not services.
QUESTION 3An entrepreneur is:
a. an employee in a factory.
b. the manager of a factory.
c. the person who conceives and starts a business.
d. the person who contracts to work for a specific price.
e. the person who does not assume any risk in business.
QUESTION 4Which of the following is closest to the definition of capital?
a. c and e.
b. c and d.
c. Tools, equipment, means of transportation
d. Factories and machinery.
e. Borrowed money.
QUESTION 5Entrepreneurs can delegate every one of the following tasks to labor except:
a. hiring and training new employees.
b. assuming business risk and uncertainty.
c. supervision of the production process.
d. researching ideas for new products.
e. marketing the goods and services produced.
QUESTION 6The person who assumes the risks and uncertainties of starting a new business is considered to be:
a. the manager. b. the out-resourcer.
c. a sales representative. d. an entrepreneur.
QUESTION 7The silly clothes worn by a circus clown are an example of:
a. a natural resource. b. capital goods.
c. labor. d. entrepreneurship.
Quick Reply
