Business Principles Course

Entrepreneur Introduction I
Test 2: Section 3
November 24 November 25, 2014
Answer each question fully, in about 1-2 sentences. For some questions, complete sentences may
not be necessary in order to fully answer the question. (50 points)
1. What are the four factors of production?
2. What is the difference between industrial goods and consumer goods?
3. What are supply, demand, and scarcity?
4. What is profit motive?
5. What is noncompetition?
6. What are three common causes of scarcity?
7. What are startup costs?
8. What is net profit?
9. What is revenue?
10. What is gross profit?

Check off from numbers 1-10 under the correct column whether each item is a Land item or Capital item.
(25 points)

LAND
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

CAPITAL
Eyeglasses
A lake
A bouquet
A field of wild flowers
A lightning storm
Bottled water
Sunlight
A jacket
Pizza
Wind

Essay questions: In section 3, you learned about economic principles, such as profit,
competition, supply and demand. Please answer each question in at least 2-3 complete
sentences. (25 points)

1. Describe a real or made up but possible example of a product that went through a time of
scarcity. What was likely to happen to the price of the product when it was scarce, and
why? (15 points)

2. Is gross profit or net profit more important to consider when youre deciding how
successful and profitable a company is? Why? Explain. (5 points)

3. Choose a well-known company that you know of, and describe its direct and indirect
competitors. Describe at least 2 direct competitors and 2 indirect competitors. (5 points)

WHITEBOARD PROTOCOL
Business Principals Class
December 1 December 11, 2014
Section 4: Production and Delivery
Bellwork:

Lesson 1: Vocabulary: Fields of Business Activity

Identify major fields of business activity, including extractive,
manufacturing, wholesaling, retailing, services, subcontracting, and
cottage industries.
Lesson 2: Vocabulary: Product and Service Types
Identify types of consumer goods, based on durability and buying
habits.
Identify types of services.
Identify ways to distribute products and services.
Lesson 3: Vocabulary: Economic Utility
Define and identify economic utility, including form, place, time,
possession, and information utility.
Lesson 4: Vocabulary: The Product Life Cycle
Define economies and diseconomies of scale.
Define market saturation.

Objective:

TLW identify ways to add economic utility to products and services.

TLW identify the stages of the product life cycle.

Classwork: Complete all Practice Exercises in Lessons 1, 2, 3, & 4.

Please write only the answers inside your journals (make sure to label

each practice)

Class Exit: Turn in journal to receive credit for vocabulary and all practice
activities before leaving class.

NOTE: Please follow as instructed by Administration how to log into the MVS
Blackboard to complete Section 4 in my absence. (Ms. Anderson)