Principles of Business Prac.

A characteristic of human wants is that they are

unlimited - when one want is satisfied, there are other wants waiting to take its place

How would a business's computers be classified?

As equipment - Equipment is used in the operation of a business but not in the actual production of a good or service

A car manufacturer receives a shipment of bolts that are going to be used in the production of automobiles. What type of industrial product would the bolts be?

Parts are items that will be part of a finished product but do not require any additional processing.

George has decided to purchase a dishwasher. He is checking the newspaper ads for the best place to get quality goods and services at a reasonable price. What type of product is the dishwasher?

Shopping - Shopping goods are consumer products that are purchased by consumers after comparing products and stores to get the best quality, price, and/or service

Which of the following is an industrial good:

Tires for a tow truck -The tires have been purchased by the towing company for use in the operation of the business

Why do marketers classify goods and services?

To aid in marketing planning - Classifying goods and services helps marketers select appropriate marketing activities for a particular product

Which of the following is a characteristic of economic services:

Useful - . Economic services are productive acts that satisfy economic wants.

What determines whether an economic product is an industrial product or a consumer product?

Who buys and uses the product - Industrial products are purchased by producers for resale, to use in making other goods and services, or for use in their operations. Consumer goods and services are purchased and used by the ultimate consumer

"Economic votes" are cast by consumers each time they

a consumer makes a purchase

An example of a noneconomic want would be the desire for

a friend - This want does not require you to spend money to satisfy it; therefore, it is a noneconomic want

An economic good or service that is scarce is one that is

a limited supply - People cannot obtain scarce items in unlimited amounts. They may, therefore, be willing to pay more for them. Items that are readily available are in good supply.

Which of the following is an example of an economic want

clothing - Economic wants are desires for things that can only be obtained by spending money

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good.

consumer - Consumer goods and services are those that are purchased and used by consumers

Bread for a family would best be classified as a(n) __________ product.

convenience - A convenience good or service is purchased quickly and without much thought or effort

Producers respond to consumers' positive economic votes by

increasing production - If a certain product is wanted by consumers, its production will be increased; however, if the item is not popular, its production will be stopped

Each day, a restaurant sends its used linens to a laundry to be cleaned and pressed. In economic terms, the laundry service would be classified as a(n) __________ service.

industrial - Industrial goods and services are purchased by producers for resale, to make other goods and services, and/or to use in business operations.

Sugar and flour that are purchased to make baked goods are classified as

materials - Materials are items that will become part of a finished product after they have been processed.

Susan is willing to pay a high price for the brand of china that she wants for her home. This china would be classified as a(n) __________ product.

specialty - Specialty goods and services have special or unique characteristics that motivate consumers to exert special efforts to obtain them

Cash-register tapes and shipping forms used by a business would be classified as industrial

supplies - Supplies are goods that are constantly being purchased and used up in the operation of a business

If a good or service is scarce, consumers will usually be

willing to pay money to get it.