Quiz #1

Question 1

What are resources referred to as?

Answer 1

Resources are referred to as factors of the production.

Question 2

What are the factors of production aka economic resources?

Answer 2

• Land.
• Labour.
• Capital.
• Entrepreneurship.

Question 3

What are Land resources?

Answer 3

All the raw materials from the earth, sea/oceans, and air.
(Metal, grain, wind power.)

Question 4

What are Labour resources?

Answer 4

All the physical and cognitive/mental efforts needed to produce goods or services.
(Plumber, architect, hair stylists, computer programmer, etc.)

Question 5

What are Capital resources?

Answer 5

Any good that is used to make other goods or services.
(Equipment, tools, buildings, machines in a business, roads, etc.

Question 6

What are Entrepreneurial resources?

Answer 6

A person to assembles and coordinates all the other resources.
(A business owner.)

Question 7

What’s a good?

Answer 7

An item that can be seen and touched which can be purchased.
(Phones, clothing.)

Question 8

What’s a service?

Answer 8

When knowledge or skills are provided in return for payment.
(Cutting hair, painting.)

Question 9

What are producers?

Answer 9

The businesses that make goods or provide services that consumers need or want.

Question 10

What are customers?

Answer 10

The people who purchase goods and services from producers.

Question 11

What are consumers?

Answer 11

The people who use goods and services from producers.

Question 12

What’s a market?

Answer 12

A location where producers and consumers come together to buy and sell their goods and services.

Question 13

What’s revenue?

Answer 13

The income earned from selling goods or services.

Question 14

What are expenses?

Answer 14

The costs related to providing and selling the goods or services.
(Rent, heat, salaries, cleaning, cost of merchandise, office supplies, etc.)

Question 15

What’s profit?

Answer 15

The money left over from sales after the expenses/costs of a business have been paid.

Question 16

What’s a business?

Answer 16

The production and/or sale of goods and services to satisfy the needs and wants of consumers usually with the purpose of making a profit.

Question 17

What kinds of businesses are there?

Answer 17

• Local.
• Regional.
• National.
• Global.

Question 18

What two types of businesses are there?

Answer 18

• For Profit: A business that produces or sells goods and services to satisfy the needs, wants, and demands of consumers for the purpose of making profit.
• Not-For Profit: An organization that operates strictly to help people in a community.

Question 19

What is Maslow’s Hierarchy of Needs from top (least important) to bottom (most important)?

Answer 19

1. Self-Actualization | Personal growth and fulfilment.
2. Esteem Needs | Status, responsibility, reputation, respect and confidence.
3. Social Needs | Belong to a group, trust and acceptance.
4. Safety Needs | Security, structure and stability.
5. Physical Needs | Shelter, warmth, food and drink.

Question 20

What are the six factors of needs and wants?

Answer 20

• Age.
• Economic Times.
• Society.
• Location.
• Marital Status.
• Social Status.

Question 21

What are the types of business ownership?

Answer 21

• Sole proprietorships - One owner.
• Partnership - Two or more owners.
• Limited Company / Corporation - The corporation is a separate legal entity from its owners. The owners are called shareholders.
• The Cooperative - Business is owned, financed, and controlled by member-patrons, who share risks and benefits.
• Franchises - Can be a combination of any of the above forms.

Question 22

What does liability mean, as well as the different types of it?

Answer 22

• Liability - Legally responsible.
• Unlimited Liability - There is no separation between the company’s assets and the owner’s personal assets.
• Limited Liability - There is a separation between the company’s assets and the owner’s personal assets.