Question 1

_____ encompasses all the synthetic resources that a business needs to produce goods or services.
A) Capital
B) Taxation
C) Revenue
D) Entrepreneurship

Accepted Answer

Capital includes all the synthetic resources such as machinery, equipment, tools, buildings, and financial investments required for producing goods or services. Taxation refers to the levying of charges on income or products by the government. Revenue is the income generated by a business from its operations. Entrepreneurship refers to the ability to set up and manage a new business idea or venture.

Question 2

The four major categories of factors of production are:
A) technology, law, capital, and ingenuity.
B) natural resources, capital, human resources, and entrepreneurship.
C) economic power, money, technology, and agriculture.
D) knowledge, human resources, capital, and technology.

Accepted Answer

The four major categories of factors of production are natural resources (such as land, water, and minerals), capital (such as buildings, equipment, and money), human resources (such as labor and knowledge), and entrepreneurship (which combines the other three factors to create new products or services). Choices A, C, and D are incorrect because they do not include all four categories and/or include irrelevant factors.

Question 3

UrbanTeens is a nonprofit organization that provides 12­18­year­olds with housing when their families are affected by domestic violence. Which of the following statements is most likely to be true of UrbanTeens?
A) It does not accept donations.
B) Its primary goal is financial gain.
C) It negatively affects the nation's economic stability.
D) It generates revenue.

Accepted Answer

The statement "It generates revenue" is most likely true of UrbanTeens because it is described as a nonprofit organization, which means it can generate revenue through donations, grants, and other sources of funding. This revenue is used to support the organization's mission, which is to provide housing to teens affected by domestic violence.

Question 4

Which of the following is an example of capital?
A) Agricultural products
B) Mineral deposits
C) Land
D) Machines

Accepted Answer

Machines are an example of capital because they are tools and equipment that are used to produce goods and services. Agricultural products, mineral deposits, and land are all examples of natural resources.

Question 5

Which of the following is the best example of a natural resource?
A) Iron ore
B) Tools
C) An entrepreneur
D) Corn grown in a farm

Accepted Answer

Iron ore is a naturally occurring mineral that can be mined and used to produce iron and steel.

Question 6

A _____ is a type of a nonprofit organization.
A) church
B) grocery store
C) restaurant
D) real estate company

Accepted Answer

A church is a type of nonprofit organization, as it is usually focused on religious or charitable purposes and does not have the goal of making a profit. The other options listed (grocery store, restaurant, real estate company) are typically for-profit businesses.

Question 7

Which of the following factors of production includes creative contributions of people that work within an economy?
A) Capital
B) Natural resources
C) Human resources
D) Entrepreneurship

Accepted Answer

Human resources refer to the people who work within an economy and contribute their skills, knowledge, and creative ideas to enhance production and contribute to economic growth.

Question 8

Which of the following is included in the capital factor of production?
A) Machines and tools
B) Manual labor
C) Mineral deposits
D) Creative contributions

Accepted Answer

The capital factor of production includes physical tools and equipment (such as machines) that are used to produce goods and services.

Question 9

Timber, water, coal deposits, and solar energy are classified as:
A) noneconomic factors.
B) natural resources.
C) pure capital.
D) base inputs.

Accepted Answer

Timber, water, coal deposits, and solar energy are all examples of natural resources, which are materials or substances that occur naturally in the environment and can be used for economic gain. Noneconomic factors are those that do not have any impact on the economy, such as cultural or social factors. Pure capital refers to man-made resources like machinery, equipment, and buildings. Base inputs are the basic materials and resources used in production, such as raw materials, labor, and machinery.

Question 10

As a factor of production, capital would include:
A) land, fresh water, and mineral deposits.
B) money, land, labor, and entrepreneurship.
C) machines, tools, buildings, and technology.
D) physical, intellectual and creative contributions of people.

Accepted Answer

Capital refers to the tools, machines, buildings, and technology used in the production process. Therefore, choice C is the correct answer. Choices A and D refer to other factors of production, namely land and labor, respectively. Choice B includes all the factors of production, including capital, but is not specific enough to be the best choice for this question.

Question 11

Islane college has contracted a construction company to build a new bookstore. The heavy machinery and equipment that the contractor will use in the construction process are classified as:
A) credit.
B) human resources.
C) natural resources.
D) capital.

Accepted Answer

The heavy machinery and equipment are considered capital because they are physical assets that are used in the production process. They are not human resources, which are the people involved in the construction process, and they are not natural resources, which are items such as wood, water, or minerals present in the environment. Finally, credit is the ability of a person or business to borrow money or access goods or services with the understanding that payment will be made at a later date, which is not relevant to the machinery and equipment in question.

Question 12

Natural resources include:
A) machines, tools, and other resources used to produce goods.
B) intellectual and creative contributions of people that work in an economy.
C) all people working in the business to create value.
D) inputs that offer value such as land, fresh water, wind, and mineral deposits.

Accepted Answer

Natural resources refer to inputs that offer value in the production of goods and services, such as land, fresh water, wind, and mineral deposits. Choices A, B, and C refer to other types of resources, such as capital, human resources, and intellectual capital.

Question 13

Which of the following statements is true of a nonprofit organization?
A) It does not employ people.
B) It does not produce goods.
C) It focuses on financial gain.
D) It generates a revenue.

Accepted Answer

A nonprofit organization can generate a revenue, but the revenue generated is used to fulfill its mission rather than to distribute profit among its members or owners. Nonprofits are usually set up to provide a specific social or charitable service, but they can still operate like any other business, with paid staff, expenses, and revenue. However, the focus is not on financial gain, but on fulfilling the organization's purpose.

Question 14

Which of the following is not considered a natural resource?
A) Fresh water available in rivers and lakes
B) Solar radiation
C) Agricultural products obtained through planting
D) Coal and other minerals

Accepted Answer

While agricultural products are derived from the use of natural resources, they themselves are not considered natural resources. Natural resources refer to the raw materials and elements found in nature, such as water, minerals, and energy sources.

Question 15

Max Education is an organization focused on educating children from poor families. The funds for the organization are raised by corporate organizations in its state. Max Education is an example of a _____.
A) virtual organization
B) nonprofit organization
C) proprietorship
D) cooperative

Accepted Answer

Max Education is a nonprofit organization as it is focused on educating children from poor families and the funds are raised by corporate organizations in its state, which are used to support their cause rather than to make a profit.

Question 16

ExxonMobil uses natural resources, such as reserves of petroleum, to produce its goods and services. The value of these resources is likely to:
A) remain constant, because natural resources are created by natural forces and don't respond to market forces.
B) rise with either an increase in demand or with a decrease in supply.
C) fall with increased demand and rise with increased supply.
D) rise with decreased demand, but remain steady when supply falls.

Accepted Answer

The value of natural resources, including petroleum, is subject to market forces and therefore can fluctuate based on changes in demand and supply. When demand for petroleum increases, its value typically rises, whereas a decrease in supply can also lead to an increase in value.

Question 17

Jill, an entrepreneur, started a company and invented a power generator that will use alternative fuels. What should be the role of her business in society, and what should her company do?
A) Jill should act such that by deploying her generator through careful licensing and patenting to protect her property, her firm will not only build wealth but will also drive up the standard of living.
B) Jill's firm should voluntarily surrender her invention to the U.S. Government in the interest of national security.
C) Since her firm will run the oil companies out of business and possibly cause economic chaos as the world tries to adjust to the changing technology, Jill should try to find a way to minimize her company's impact, and sit on her invention for now.
D) Jill should share the designs of her invention with her competitors so that the power generator can be produced in all markets..

Accepted Answer

Jill's role as an entrepreneur is to create wealth and drive up the standard of living by deploying her generator. As a business, her company should focus on careful licensing and patenting to protect her property and build wealth while also benefiting society. This will enable her invention to be used by others, create jobs, and promote a sustainable future. The other options, such as surrendering her invention to the government or sharing her designs with competitors, do not align with the interests of her company or society. Minimizing her impact is also not a viable option as the world will inevitably adjust to changing technology.

Question 18

Janet owns a modern 600­acre farm that grows corn and soybeans. Instead of selling soybeans at market rates, she decides to use them to produce soy milk and sells flavored soy milk in cartons. By taking the risk of launching her own business, Janet exemplifies the _____ factor of production.
A) Entrepreneurship
B) Natural resources
C) Human resources
D) Capital

Accepted Answer

Janet's decision to use her resources and start her own business showcases entrepreneurship, which involves taking risks and innovating to create new products or services. The other factors of production (natural resources, human resources, and capital) are important in the production process, but they do not necessarily involve the risk-taking and innovation that define entrepreneurship.

Question 19

Tariq has just received a loan from the Small Business Administration to open a printing shop in his community. He will be leasing computers, copiers, scanners, and printers. These items represent his need for:
A) natural resources.
B) capital.
C) entrepreneurship.
D) human resources.

Accepted Answer

The items listed (computers, copiers, scanners, and printers) are all capital goods, which are the tools, equipment, and buildings used in the production of goods and services. The fact that Tariq is leasing these items further confirms that they are capital goods, as he is not purchasing them outright but rather using them for a period of time in exchange for regular payments.

Question 20

John Blue has started his own Internet business, Blueways.com, an e­store that sells refurbished computer parts. His business has experienced a slower than usual start due to higher than expected costs for capital resources. Those expenses include:
A) intellectual contributions, money, and skilled labor.
B) computers, cables, Internet service, copiers, and software.
C) raw materials, money, and employee training.
D) advertising and marketing costs.

Accepted Answer

The expenses mentioned, such as computers, cables, Internet service, copiers, and software, are all capital resources needed for running an e-store. The other options listed do not fit the description of capital resources needed for an Internet business selling computer parts.

Quiz 1: Business Now: Change Is the Only Constant

_____ encompasses all the synthetic resources that a business needs to produce goods or services.

The four major categories of factors of production are:

UrbanTeens is a nonprofit organization that provides 1218yearolds with housing when their families are affected by domestic violence. Which of the following statements is most likely to be true of UrbanTeens?

Which of the following is an example of capital?

Which of the following is the best example of a natural resource?

A _____ is a type of a nonprofit organization.

Which of the following factors of production includes creative contributions of people that work within an economy?

Which of the following is included in the capital factor of production?

Timber, water, coal deposits, and solar energy are classified as:

As a factor of production, capital would include:

Islane college has contracted a construction company to build a new bookstore. The heavy machinery and equipment that the contractor will use in the construction process are classified as:

Natural resources include:

Which of the following statements is true of a nonprofit organization?

Which of the following is not considered a natural resource?

Max Education is an organization focused on educating children from poor families. The funds for the organization are raised by corporate organizations in its state. Max Education is an example of a _____.

ExxonMobil uses natural resources, such as reserves of petroleum, to produce its goods and services. The value of these resources is likely to:

Jill, an entrepreneur, started a company and invented a power generator that will use alternative fuels. What should be the role of her business in society, and what should her company do?

Janet owns a modern 600acre farm that grows corn and soybeans. Instead of selling soybeans at market rates, she decides to use them to produce soy milk and sells flavored soy milk in cartons. By taking the risk of launching her own business, Janet exemplifies the _____ factor of production.

Tariq has just received a loan from the Small Business Administration to open a printing shop in his community. He will be leasing computers, copiers, scanners, and printers. These items represent his need for:

John Blue has started his own Internet business, Blueways.com, an estore that sells refurbished computer parts. His business has experienced a slower than usual start due to higher than expected costs for capital resources. Those expenses include: