Business Econ Exam 1

A couple constructs a decision matrix to select which charity will receive a $500 donation. Since "helping children" is the most important criteria to the couple, which of the following weights should it be assigned?

.60

A group of entrepreneurs is trying to decide which of five new product ideas to select. Which tool can be used to help make the decision?

Decision Matrix

The U.S. government is offering a decrease in taxes to citizens who install solar panels on their homes. Using economic terms, how would you describe this incentive?

Financial and positive

Which of the following is a negative economic incentive:

High taxes on cigarettes

Which of the following is an economic activity:

Purchasing a candy bar

Why are human resources limited?

Some people are unable to work.

Which of the following is an example of a change in culture affecting the production of a good or service:

The "green movement" leads to an increase in demand for recycled products.

Why are resources considered limited?

There are not enough available so that everyone can have as much of them as desired.

In some states, it is against the law to sell alcohol on Sundays. This law was created to honor the Christian religious belief that Sunday is a special day of rest. This is an example of culture impacting the __________ of goods.

distribution

Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is

ice cream at Dairy Queen

Arm and Hammer baking soda, which was originally developed as a cooking ingredient, is now being sold as an effective refrigerator deodorizer. This is an example of ____________ innovation.

positioning

John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?

New pair of jeans

Which of the following does consumption rely on to provide goods and services:

Producers

Which of the following is an example of paradigm innovation:

Windows computer operating system

Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision?

concert tickets