ch 1
An oligopoly exists when there are many small businesses selling one standardized product.
false
Monopolistic competition exists when there is only one producer of a product in a given market.
false
A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a(n)
budget defecit
The United States is now considered a service-oriented economy, with the service industry accounting for an estimated _____________________ percent of the total U.S. economy.
80
Which of the following is not a product?
Business Profit
All of the following are associated with the Industrial Revolution except
Computers
The primary goal of business activities is profit.
True
Capitalism is an economic system in which the government owns and operates basic industries while individuals own most other businesses.
False
Profit is what it costs to make and sell a product.
False
_____________________ resources are also known as labor.
Human
Agricultural commodities are usually sold under which competitive environment?
Pure competition
Trends have gradually changed the U.S. to a(n) _____________________ economy focused on making life easier for busy consumers.
Service
A product's equilibrium price is constantly changing in response to changes in economic conditions, availability of resources, and degree of competition.
True
Entrepreneurs risk their wealth, time, and effort to develop for profit an innovative product or way of doing something.
True
Free-market capitalism and laissez-faire capitalism are essentially the same thing.
True
Most socialist nations are democratic.
True
Countries measure the state of their economies to
determine whether they are expanding or contracting.
The American economic system is best described as _____________________ because the government regulates business to preserve competition and protect consumers and employees.
modified capitalism
When Apple introduced the iPad the price of and demand for netbooks and notebooks were high. As a result,
other suppliers introduced competing products to take advantage of the demand.
When purchasing, a consumer is actually buying a product's anticipated benefits and
satisfaction