intro to business quiz 1

All economies must answer what 3 questions?

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?

Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs. T or F

F

Buildings, equipment, and supplies are examples of natural resources. T or F

F

People producing goods and services are called a) human resources b) natural resources c) capital resources d) limited resources

a

The rivalry among businesses to sell their goods and services is known as a) competition b) entrepreneurship c) capitalism d) cornering the market

a

Who owns the economic resources in a market economy? a) the people of the country b) the tribal elders c) the gov d) business ppl and entrepreneurs but not consumers

a

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

b

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

b

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

b

Which of the following is an economic need? a) a new tv b) water c) concert tickets d) a loaded SUV

b

what is the first step in the decision making process a) identify the choices b) define the problem c) evaluate choices d) act on your choice

b

which of the following is probably a competitor to Mary's CD Shop? a) food clown grocery store b) B flat records and tapes c) Al's Garage d) Donna's Donut Hut

b

If everybody had an unlimited supply of economic resources, which of the following would not exist? a) wants b) capitalism c) scarcity d) needs

c

The largest producer of goods and services in the world is a) Japan b) Russia c) the u.S. d) china

c

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 probelm

c

which of the following is NOT an especially important principle of the U.S> econoic system a) freedom of choice b) private property c) tradition d) profit

c

which of the following scenarios will prob cause prices to drop a) a new snack food is very popular and only 1 company produces it b) a big snowstorm is approaching, and the only hardware store in twon has just a few snow shovels in stock c) many companies begin producing a product in relatively high demand d) half of the world's diamond mines shut down productioon

c

Personal economic freedom is most limited in a _____ economic system

command

_____ are businesses offering very similar products to the same costumers

competitors

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.

d

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.

d

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

d

all nations must decide a) what combo 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

d

another name for the economic system in the U.S. is a) private enterprise b) capitalism c) free enterprise d) all of the above

d

in the U.S. 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 prop

d

_____ is the quantity of a good or service that consumers are willing and able to buy

demand

a nation's plan for answering the three economic questions is called its

economic system

a _____ is the risk taker who uses resources in a new way to create a new product or service

entrepreneur

briefly describe the basic economic problem

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

the ____ price is the point where supply and demand are equal

market

a ____ economy combines elements of the command and market economies

mixed

name the 3 factors of production

natural resources, human resources, capital resources

when you make an economic choice, the _______ is the value of the next-best alternative that you did not choose

opportunity cost

_____ are individuals and organizations that determine what products and services will be available for sale

producers

the money left over from sales after all the costs of operating a business have been paid is called _____

profit

_____ means not having enough resources to satisfy every need

scarcity

Intangible things that you purchase referred to as

services

the ____ curve for product illustrates the relationship between the price of a product and the quantity business will produce

supply

things that add comfort and pleasure to your life

wants

Explain what is meant by the saying that consumers "vote" with their dollars every time they buy products in the marketplace.

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 lots of a certain product, they are telling businesses to continue making that particular item