Economic Decisions And Systems - Ch1

19 Questions | Total Attempts: 438

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Economic Decisions And Systems - Ch1

Chapter One TEST


Questions and Answers
  • 1. 
    Your needs and wants never end
    • A. 

      True

    • B. 

      False

  • 2. 
    Products and money used in the production of goods and services are called natural resources
    • A. 

      True

    • B. 

      False

  • 3. 
    The mismatch of unlimited wants and needs and limited economic resources is calle the basic economic problem.
    • A. 

      True

    • B. 

      False

  • 4. 
    The first step in the economic decision making process is to evaluate the advantages and disadvantages of each choice.
    • A. 

      True

    • B. 

      False

  • 5. 
    The United States could best be described as a command economy.
    • A. 

      True

    • B. 

      False

  • 6. 
    The right of private property means you can own, use or dispose of things of value.
    • A. 

      True

    • B. 

      False

  • 7. 
    In a market economy, buying decisions are made by the consumer.
    • A. 

      True

    • B. 

      False

  • 8. 
    If heavy competition for a product keeps its price really low, businesses will be very motivated to offer the product for sale.
    • A. 

      True

    • B. 

      False

  • 9. 
    If many consumers want a particular service, its price will probably go up.
    • A. 

      True

    • B. 

      False

  • 10. 
    10. THe higher the price, the higher the producers profits.
    • A. 

      True

    • B. 

      False

  • 11. 
    All of the following is a need EXCEPT
    • A. 

      A good education

    • B. 

      Clothing

    • C. 

      Fine jewelry

    • D. 

      Clean air

  • 12. 
    The means through which goods and services are produced are called
    • A. 

      Economic Resources

    • B. 

      Needs

    • C. 

      Spending opportunities

    • D. 

      Economic choices

  • 13. 
    All of the following is a capital resource EXCEPT
    • A. 

      A pickup truck

    • B. 

      A factory

    • C. 

      Lumber

    • D. 

      Employees

  • 14. 
    The value of the next best alternative that you did not choose is called
    • A. 

      Tradeoff cost

    • B. 

      Scarcity

    • C. 

      Opportunity cost

    • D. 

      Economic cost

  • 15. 
    When a country decides to focus on advanced technology and a skilled labor force, it is primarily answering which of the basic economic questions?
    • A. 

      What to produce?

    • B. 

      How to produce?

    • C. 

      Which needs to satisfy?

    • D. 

      Which wants to satisfy?

  • 16. 
    Personal economic freedom is most limited in a
    • A. 

      Command economy

    • B. 

      Market economy

    • C. 

      Traditional economy

    • D. 

      Mixed economy

  • 17. 
    Which of the following is NOT characteristic of a capitalistic economy
    • A. 

      Freedom o fchoice

    • B. 

      Government ownership of resources

    • C. 

      The profit motive

    • D. 

      Comopetiiton among businesses

  • 18. 
    The quantity of a good or service that consumers are willing and able to buy is called
    • A. 

      Supply

    • B. 

      Economic want

    • C. 

      Demand

    • D. 

      Economic need

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