Goods and services are scarce because
a. people are greedy
b. they are produced using scarce resources
c. firms keep production low in order to earn higher profits
d. they are produced by firms that seeks profits
e. government wants to maintain its power over the economy
QUESTION 2Which of the following is a service?
a. anything that is scarce and that satisfies unlimited human wants
b. a thing for which people pay money
c. an intangible activity that satisfies human wants
d. any output produced by a service-sector industry, such as fast food
e. something less desirable than a good
QUESTION 3The difference between a good and a service is that
a. a good helps satisfy unlimited wants; a service does not
b. a service helps satisfy unlimited wants; a good does not
c. a services is available in unlimited quantities; a good is not
d. a good is available in unlimited quantities; a service is not
e. a good is tangible; a service is not
QUESTION 4Resources are used only in the production of goods, not services.
a. True
b. False
QUESTION 5An entrepreneur is a(n)
a. individual who has much education
b. organizer who seeks profitable opportunities and is willing to accept risks
c. business organization that uses inputs to produce output
d. administrator who runs an enterprise without accepting any risk of financial loss
e. depot or storehouse for commercial products
QUESTION 6In economics, capital refers to
a. money
b. stocks, bonds, and other financial assets
c. the seat of government
d. machines, buildings, tools, and knowledge
e. net worth (assets minus liabilities)
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