chapter 1 exam POB
True or False: trade industries all have the same form of ownership
False: they may be independent or belong to a chain
company that constructs houses and business facilities. What type of producers?
builders
A local neighborhood has many houses for sale at a low price, but demand for the house is low. What kind of market most likely exist in the neighborhood?
buyer's
A local dealership purchased 100 blue pick up trucks but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating a (______________) market for blue pick up trucks
buyers
which of the following determines whether consumers can purchase goods or services?
buying power
When a stove is used in a restaurant, it is.........?
capital good
Automation involves replacing human resources with
capital goods
Maintenance, modifications, and use of alternative sources are responsible to limited
capital goods
economic decision making
choices, and trade offs- (losing one idea to pursue abother
(__________) economic system is controlled by the government. The government controls the prices of commodities and regulates interactions between producers and consumers.
command
The heart of economics is
decision making
Most businesses strive to supply goods and services in direct proportion to?
demand
elastic demand
demand changes when price changes
inelastic demand
demand is constant even if price change
The "things" people buy to satisfy needs/wants are:
economic goods and services
Rather than being required to start his workday at 8 AM and end at 4 PM, Tyler is allowed to start and end his workday at his convenience as long as he works 40 hours per week. This is an example of
flextime
Which of the following is characteristic of sellers market
high prices, large demand, small supply
Which of the following economic resources is responsible for combining the other resources to produce goods and services:
human resources
Which of the following occurs when the supply of individuals who are able and willing to work diminishes.....?
human resources become limited
What do service businesses sell?
intangible activities
When there is not enough of a resource available for everyone to have as much of it as desired, the resource is.....?
limited
Basic economic problem
most consumers simply do not have enough money to buy everything they want
Which of the following factors may influence supply?
natural disasters
Using a stream to supply water for crops is an example of using.....?
natural resources
Weather conditions we can most likely direct affect the supply of......?
natural resources
Which of the following describes an inelastic demand?
not affected by price change
Traditional Economy
older concept in underdeveloped countries (rely on natural resources)
Which of the following situation involves finding an alternative resource to use in place of a nonrenewable natural resource?
powering a motor vehicle with bio diesel instead of gasoline
A characteristic of human wants is that they are...?
unlimited
Need and wants are?
unlimited
Scarcity
unlimited wants and needs but limited resources
Farms, mines, and lumber companies are examples of.?????????
raw-good producers
A gap between unlimited wants and limited resources creates
scarcity
Which of the following situation involves finding another source of limited natural resources
searching for oil on the ocean floor
A large retailer feels that it has a duty to contribute to the well-being of society, so it donates a portion of its proceeds to a charity that helps the environment. The retailer is demonstrating........?
social responsibility
Retailing takes place whenever goods are???
sold to the ultimate consumer
Your business is selling more and more large screen television's each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions over the next few months?
the price will increase, and supply will increase
working for a grocery store that buys food from producers and sells it to customers. The grocery store is considered....?
trade industry
(________) economic system in which production activities are done as needed in order to satisfy a specific demand.
traditional
A business that produces a product should be socially responsible to the (________) product.
users
two main divisions of the trade industry
wholesailers and retailers
Which of the following occurs when the supply of individuals who are able and willing to work diminishes
Human resources become limited
What is the difference between a need and a want
Needs- are those required to live, such as food, clothing, and shelter. Want- are things that add comfort and pleasure to our lives such as television, music CDs, and movies.
four principles of the us economic system
Private property, freedom of choice, profit, competition
One factor that might limit the human resources available for certain jobs is.....?
inadequate pay level
mixed economies
a balance of government. controlled and free- market
Demand for a good is more likely to be elastic when the good is?
a luxury
One way in which many businesses demonstrate their social responsibility toward employees is by providing them with.......
a safe working environment
A killing frost destroys 80% of Florida citrus crop. This is likely to create?
a sellers market
When the price increase, producers usually?
increase supply
which of the following economic resources help people to be more productive:
capitol goods
market economy
controlled by supply and demand
command economy
controlled by the government
And economic good or service that is scarce is one that is......?
in limited supply
Orlando changes the price of one of his products, and this price change leads to a major change in the number of people who purchase the product. This means that the demand Orlando's product is
elastic
The connection between the social responsibility of a business and the community in which the business operates is that the business's social responsibility (____________) the community.
has an effect on
A sales clerk working part time at a clothing store is an example of a
human resource
Offering higher wages, employee assistance programs, and benefits are response to limited......?
human resources
Producers respond to customers' positive economic votes by......?
increasing production
Even though gasoline prices increased $.15 per gallon as a result of the new gas tax, I will continue to buy gas so that she can make her 20 mile drive to work. This is an example of what type of demand?
inelastic
Resources that enable businesses to operate are also known as....?
inputs
businesses rely on customers to
make money, stay in business, get word of mouth advertising
a company that transforms cotton into wearable clothing is considered a....?
manufacturer
One way a business can show its social responsibility is by (_____________) it's profits
maximizing
Economics is the study of how people allocate scarce resources for?
production, distribution, and consumption of goods and services
Business can show their social responsibility by contributing to.......
public interests
Law of Supply
quantity of a good or service that will be offered for sale varied in direct relation to its selling orice
producers
raw good producers, manufacturers, builders
The quantity of a good or service that producers are able and willing to offer for sale I did a specified price in a given period of time is
supply
When the price of DVD players increases, the quantity of DVD players offered for sale will increase. This is an example of the law of?
supply
When producers use the best combination of resources, consumers are more likely to get goods and services that:
they want
Over the next few years, members of generation X and Y are expected to fill many job positions vacated by retiring baby boomers. This is an example of a change in
workforce demographics
Example of scarcity
you don't have to pay to breathe air. air is not scarce. but you want cool air for the summer and hot air for the winter