DECA- Business Economics Worksheet 1

Trista managed a retail store specializing in designer jeans. She found that she could not keep enough of the "Dess" designer jeans in stock. As soon as they came in, customers were buying them until they sold out. This is known as economics

False, not using scarce resources properly (economics)

Thom couldn't decide whether to purchase a DVD player or a mountain bike. He didn't have enough money for both so he could only purchase one. The cost involved is called an economic cost.

False, opportunity (economic)

Cumberworth's Creations manufactures gift items for retailers in the East. This company is known as a distributor.

False, producer (distributor)

Buildings, labor, workers, typing supplies, company cars, and managers are all considered goods and services

False, resources (goods and services)

Richard had a choice. When he was offered a job at Dom's Deli, he had to choose between taking more pay or better fringe benefits. This is an example of an opportunity cost.

False, trade offs (opportunity costs)

Mr. Crimpson is an economist. During the course of each day, he studies how to meet limited wants with limited resources

False, unlimited (limited, first)

The hottest mobile device over the past several years has been the Apple iPhone. When there is such a large demand for a product, the price of the product will normally go down.

False, up (down)

Buildings, property, and equipment used in manufacturing and trucks used for shipping would all be considered capital goods.

True

Kris Kerpstra is an employee for General Dynamics. Kris would be considered a human resource.

True

Trees, water, and air are all considered natural resources.

True

Benson's Department Store purchased an empty building next to its store. The company bought the building so it can expand the store. The building would be considered a natural resource.

False, capital (natural)

Johann would be considered a producer because he purchased a new lawn mower when his old mower no longer worked.

False, consumer (producer)

Whenever you purchase an item to be used by yourself or someone else, you are said to be distributing that item.

False, consuming (distributing)

All people depend on one another for goods and services. These goods and services reach us through four basic economic activities: consumption, production, exchange, and manufacturing

False, distribution (manufacturing)

A movie would be considered a noneconomic want.

False, economic (noneconomic)

For graduation, Von would really like a new car. This would be considered a noneconomic want.

False, economic (noneconomic)

Every economic system must answer three basic economic questions. These questions are what products will be produced, why will the products be produced, and how will the products be allocated.

False, how (why, second question)

Examples of a resource that is considered unlimited are workers and managers.

False, limited (unlimited)

Oil production has declined in the past few years and probably will continue to decline in the future. This is because oil is an unlimited resource.

False, limited (unlimited)

Trisha wishes that she and Bo could become better friends. This is an example of an economic want.

False, noneconomic (economic)