Study Guide and Quiz Answers

If consumers start to believe they need a product such as medication, what is likely to happen? A. The demand becomes less elastic. B. The demand becomes more elastic. C. The supply decreases. D. The price decreases. Please select the best answer from the choices provided

What does scarcity force people to do? A. They produce commodities. B. They make choices. C. They consume products. D. They increase inflation. Please select the best answer from the choices provided

If your company uses a nonprice competition strategy, what should you focus on? A. Lower prices B. Differentiation C. Create direct competitors D. Partner with the public sector Please select the best answer from the choices provided

Which of the following commodities is a good?A.A swimming lessonB.A deskC.House cleaningD.Dog walking

Which two factors and their interaction regulate the market economy? A. Goods and services B. Producers and consumers C. Product-based and service-based businesses D. Public and private sectors Please select the best answer from the choices provided

As a factor of production, how is capital created? A. By adding land to entrepreneurship. B. By adding human labor to land. C. By removing land from services. D. By using labor to create services. Please select the best answer from the choices provided

Which of the following is an indirect competitor for a company that makes chocolate chip cookies?A.Another company that makes chocolate chip cookiesB.A company that makes potato chipsC.A company that makes baking pansD.A company that makes brownies

A producer is _____________. A. someone who makes a commodity available for sale or exchange B. someone who buys or trades in order to receive a commodity C. someone who is in the market for a commodity D. someone who receives a commodity from a business Please select the best answer from the choices provided

What is a commodity? A. Something that producers are unable to sell to consumers. B. A resource that is available in unlimited quantities. C. An exchange between a producer and a consumer. D. Something of value that can be bought, sold, or traded. Please select the best answer from the choices provided