Aaron J Hudson
AMM 101
Dr. Silverman
9/11/05
Review Questions: Chapter 1
1. No matter what career one decides to pursue, there is always a business side of
that career to learn to succeed.
2. Two main factors that affects a person’s choice of careers are:
a) What can I do to make employers want to pay me?
b) What skills do I have that employers need
3. Combination of 4 resources to organize/operate businesses are:
a) Material: Raw materials used in the manufacturing process
b) Human: People who furnish labor in exchange for wages
c) Finances: Money required to operate business; pay employees/buy
supplies
d) Information: Info to Managers of business on how effective other
resources are being used
They differ from factors of productions in the sense that these factors are needed
to organize a business. Where factors of productions are used to produce a good
or service of that same business.
7. Laissez-faire: 4 fundamental issues required:
a) Creation of wealth is concern of private individual, not government
b) Private individual must own resources to create wealth
c) Economic Freedom; buyers/sellers are free to enter/leave market when they
choose
d) Government role of free market should be limited to rule making.
8. Because our economy is a combination of both a capitalistic & socialistic
economy. The government does not interfere with the free market (Capitalism)
but does own and regulate certain services to the nation, i.e. National Security,
NYPD, FDNY (Socialism)