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