Multiple Choice
Which term best describes a consumer who sells a product or service to a business on the internet?
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0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
What is the main reason a business operates?
A
To eliminate all competition in the market
B
To earn a profit by providing goods or services
C
To ensure all resources are equally distributed
D
To maximize government regulation
Verified step by step guidance1
Understand the fundamental goal of a business in microeconomics, which is centered around economic incentives and market behavior.
Recognize that businesses exist primarily to provide goods or services that satisfy consumer needs or wants.
Identify that the main motivation for a business to operate is to earn a profit, which is the difference between total revenue and total cost.
Note that eliminating competition, ensuring equal resource distribution, or maximizing government regulation are not primary objectives of a business, but rather external factors or policy considerations.
Conclude that the correct reason a business operates is to earn a profit by providing goods or services, as this drives production, innovation, and market participation.
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