The goal of business is to earn A. respect. B. Resources. C. A profit. D. Respon

Question

The goal of business is to earn A. respect. B. Resources. C. A profit. D. Responsibility. 1. Factors of production are A. resources used to produce goods and services. B. Fixes resources. C. Taxes. D. Seldom in demand. E. Free. 2. 3. Which of the following questions are addressed by all economic systems? A. What goods and services should be produced? B. How much of each good and service should be produced? C. Who will produce the goods? D. How should the goods and services be distributed? E. All of the above. 4. All of the following are true in a communist society except A. the means of production are owned by the government. B. The government chooses what will be produced. C. The government decides who will produce the goods. D. Supply is determined by central government planning. E. Consumers have a wide choice of goods and services. 5. 5. Socialism A. allows only private ownership of business. B. Allows only government ownership of the factors of production. C. Has government ownership of basic industries. D. Is becoming more popular. E. All of the above. 6. Under a capitalist system, goods and services provided are determined by all of the following except A. competition. B. Supply. C. Consumer demand. D. Market forces. E. Businesses owned by the government.

Explanation / Answer

Q1. The main aim of business is to earn profit because business is basically run or operated on profit basis. Profit acts as life and blodd of business. Sustenance of business depends on its profitability. If a firm is able to earn normal profit, it can sustain itself other wise it had to go out of business.

Hence, the correct answer is option (C).

Q2. Factors of production are referred to as resources or means through which firm undertakes the production of goods and services. Factors of production are majorly classified into four broad categories - Land, labor, capital, and entrepreneurship.

Hence, the correct answer is option (A).

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