Question

1. As a factor of production, how is capital created?
By adding land to entrepreneurship
By adding human labor to land
By removing land from services
By using labor to create services

2. What is a commodity?
Something that producers are unable to sell to consumers?
A resource that is available in unlimited quantities
An exchange between a producer and consumer
Something of value that can be bought, sold, or traded

3. If consumers start to believe they need a product, what is likely to happen?
The demand becomes less elestic
The demand becomes more elastic
The supply decreases
The price decreases

4. Which of the following commodities is a good?
A swimming lesson
A desk
House cleaning
Dog walking

5. If your company uses a nonprice competition strategy, what should you focus on?
Lowering prices
Differentiation
Creating direct competitors
The public sector

Answer 1

Did you figure these out?