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Copyright Goodheart-Willcox Co., Inc.
Review and Assessment
Chapter Summary
Section 1.1 Introduction to Business
• Business is all the activities involved in developing and exchanging products. Products
are goods and services that can be bought or sold to meet needs or satisfy wants. Business
provides economic benefits such as providing products, creating markets, and generating
economic benefits.
• The functions of business are production, finance, marketing, and management. In order for
business to be successful, all the functions must work together.
Section 1.2 Introduction to Economics
• Economics is a science that examines how goods and services are produced, sold, and used.
It involves how individuals, governments, and businesses make choices about using limited
economic resources to satisfy unlimited wants. Factors of production are the economic
resources a nation uses to make goods and to supply services for its population.
• An economic system is an organized way in which a state or nation chooses to use its
resources to create goods and services. Economic systems are classified as being traditional,
command, market, or mixed economies.
• Market forces are economic factors that affect the price, demand, and availability of a good or
service. Market forces include supply and demand, the profit motive, and competition.
Online Activities
Complete the following activities to help you learn, practice, and expand your knowledge and skills.
Posttest. Now that you have finished the chapter, see what you learned by taking the chapter
posttest.
Vocabulary. Practice vocabulary for this chapter using the e-flash cards, matching activity,
and vocabulary game until you are able to recognize their meanings.
Review Your Knowledge
1. Differentiate between goods and services.
2. What are the benefits created by business?
3. Explain the five types of utility provided by business.
4. How does business create economic benefits?
5. Describe the four functions of business.
6. Explain how economic resources determine what goods and services will be produced.