Goods and services are purchased by businesses as well as by individuals.. All economic resources have a limited supply.. The basic economic problem results from not having enough resour
Trang 1a. True
b. False
ANSWER: False
2. Goods and services are purchased by businesses as well as by individuals
a. True
b. False
ANSWER: True
3. Buildings, equipment, and supplies are examples of natural resources
a. True
b. False
ANSWER: False
4. All economic resources have a limited supply
a. True
b. False
ANSWER: True
5. The basic economic problem results from not having enough resources to satisfy every need
a. True
b. False
ANSWER: True
6. The final step in the decision-making process is to select the best choice from among the alternatives
a. True
b. False
ANSWER: False
7. Although all nations differ in the type and amount of economic resources they have, they all have the same economic
needs
a. True
b. False
ANSWER: False
8. Communism refers to the private ownership of resources by individuals rather than by the government
a. True
Trang 2a. True
b. False
ANSWER: True
10. Generally, a lack of competition will result in lower prices for goods and services
a. True
b. False
ANSWER: False
11. Which of the following is an economic need?
a. a new television
b. water
c. concert tickets
d. a loaded SUV
ANSWER: b
12. Goods
a. are things you purchase only after your basic needs are met
b. have no physical characteristics
c. must be provided to you at the time you want to consume them
d. are things you can see and touch
ANSWER: d
13. The largest producer of goods and services in the world is
a. Japan
b. Russia
c. the United States
d. China
ANSWER: c
14. People producing goods and services are called
a. human resources
b. natural resources
c. capital resources
d. limited resources
Trang 3a. wants
b. capitalism
c. scarcity
d. needs
ANSWER: c
16. Jonah had $25 to spend. He decided to buy a new shirt instead of going to the amusement park with his friends. Jonah
has
a. purchased a service
b. made an economic trade-off
c. made a poor economic decision
d. ignored the concept of scarcity
ANSWER: b
17. What is the first step in the decision-making process?
a. identify the choices
b. define the problem
c. evaluate the choices
d. act on your choice
ANSWER: b
18. What is the final step of the decision-making process?
a. act on your choice
b. make a decision
c. review your decision
d. define the problem
ANSWER: c
19. In every nation on Earth,
a. economic resources are owned and controlled by the government
b. workers have the ability to produce the same goods and services
c. individuals have the same wants and needs
d. people must deal with the problem of scarcity
ANSWER: d
Trang 4a. what combination of resources will best suit its circumstances
b. which wants and needs are most critical
c. which goods and services to produce
d. all of the above
ANSWER: d
21. The government of Erewhon owns and controls all economic resources and decides how those resources will be
used. The government even assigns people specific jobs and careers. Erewhon uses which type of economic system?
a. market economy
b. command economy
c. traditional economy
d. laissez-faire economy
ANSWER: b
22. Who owns the economic resources in a market economy?
a. the people of the country
b. the tribal elders
c. the government
d. businesspeople and entrepreneurs but not consumers
ANSWER: a
23. Which type of economy is usually centered mainly on meeting people’s basic needs?
a. market economy
b. command economy
c. mixed economy
d. traditional economy
ANSWER: d
24. Another name for the economic system in the United States is
a. private enterprise
b. capitalism
c. free enterprise
d. all of the above
ANSWER: d
Trang 5a. freedom of choice
b. private property
c. tradition
d. profit
ANSWER: c
26. In the United States, you can own anything you want and decide what you want to do with it, as long as it does not
violate the law. This describes the principle of
a. scarcity
b. competition
c. the command economy
d. the right of private property
ANSWER: d
27. The rivalry among businesses to sell their goods and services is known as
a. competition
b. entrepreneurship
c. capitalism
d. cornering the market
ANSWER: a
28. Generally, as the price of a product increases,
a. consumers will be willing to purchase larger quantities of the product
b. businesses will be willing to supply larger quantities of the product
c. the supply curve will slope downward
d. demand will increase
ANSWER: b
29. Which of the following scenarios will probably cause prices to drop?
a. A new snack food is very popular, and only one company produces it
b. A big snowstorm is approaching, and the only hardware store in town has just a few snow shovels left in stock
c. Many companies begin producing a product in relatively high demand
d. Half of the world’s diamond mines shut down production
ANSWER: c
Trang 6a. Food Clown grocery store
b. B Flat Records and Tapes
c. Al’s Garage
d. Donna’s Donut Hut
ANSWER: b
31. Things that add comfort and pleasure to your life are
ANSWER: wants
32. Activities provided for the satisfaction of others and consumed at the time of purchase are
ANSWER: services
33. A(n) is the risk taker who uses resources in a new way to create a new product or
service
ANSWER: entrepreneur
34. means not having enough resources to satisfy every need
ANSWER: Scarcity
35. When you make an economic choice, the is the value of the next-best alternative that you
did not choose
ANSWER: opportunity cost
36. A nation’s plan for answering the three economic questions is called its
ANSWER: economic system
37. Personal economic freedom is most limited in a(n) economic system
ANSWER: command
38. A(n) economy combines elements of the command and market economies
ANSWER: mixed
39. The money left over from sales after all the costs of operating a business have been paid is called
ANSWER: profit
Trang 7ANSWER: Demand
42. The curve for a product illustrates the relationship between the price of a product and the
quantity businesses will produce
ANSWER: supply
43. are businesses offering very similar products to the same customers
ANSWER: Competitors
44. The price is the point at which supply and demand are equal
ANSWER: market
45. Name the three factors of production
ANSWER: The three factors of production are natural resources, human resources, and capital resources.
46. Briefly describe the basic economic problem
ANSWER: Individuals and businesses have unlimited wants and needs. The economic resources they have are
limited. The mismatch of unlimited wants/needs and limited economic resources is the basic economic problem
47. All economies must answer three economic questions. Name them
ANSWER: 1. What goods and services will be produced?
2. How will the goods and services be produced?
3. What needs and wants will be satisfied with the goods and services produced?
48. Explain what is meant by the saying that consumers “vote” with their dollars every time they buy products in the
marketplace
ANSWER: When consumers buy something, they send a message to businesses regarding their buying preferences,
helping to direct the use of resources. Businesses make decisions on what goods and services to produce based on how they decide to use their resources. When consumers buy a large quantity of a certain product, they are telling businesses to continue making that particular item