Intro to Business- Chapter 1 Test Review

1.

Multiple Choice

30 sec

1 pt

All economic resources have a limited supply.

True

False

2.

Multiple Choice

30 sec

1 pt

Things that are required in order to live are known as wants.

True

False

3.

Multiple Choice

30 sec

1 pt

Buildings, equipment and supplies are examples of natural resources.

True

False

4.

Multiple Choice

30 sec

1 pt

A person who buys and uses goods and services is called a consumer.

True

False

5.

Multiple Choice

30 sec

1 pt

Communism refers to the private ownership of resources by individuals rather than by the government.

True

False

6.

Multiple Choice

30 sec

1 pt

What is the final step of the decision-making process?

review your decision

act on your choice

make a decision

define the problem

7.

Multiple Choice

30 sec

1 pt

Who owns the economic resources in a market economy?

business people and entrepreneurs but not consumers

the tribal elders

the people of the country

the government

8.

Multiple Choice

30 sec

1 pt

Every nation must decide

what combination of resources will best suit its circumstances

which wants and needs are most crucial

which goods and services to produce

all of the above

9.

Multiple Choice

30 sec

1 pt

Which of the following scenarios will probably cause prices to drop?

many companies begin producing a product in relatively high demand

a new snack food is very popular, and only one company produces it

half of the world's diamond mines shut down production

A big snowstorm is approaching, and the only hardware store in town has just a few snow shovels left in stock.

10.

Multiple Choice

30 sec

1 pt

If everybody had an unlimited supply of economic resources, which of the following would not exist?

wants

capitalism

scarcity

needs

11.

Multiple Choice

30 sec

1 pt

Goods

must be provided to you at the time you want to consume them

are things you purchase only after your basic needs are met

are things you can see and touch

have no physical characteristics

12.

Multiple Choice

30 sec

1 pt

People producing goods and services are called

capital resources

human resources

limited resources

natural resources

13.

Multiple Choice

30 sec

1 pt

The rivalry among businesses to sell their goods and services is known as

cornering the market

competition

capitalism

entrepreneurship

14.

Multiple Choice

30 sec

1 pt

Which of the following is NOT an especially important principle of the U.S. economic system?

freedom of choice

private property

tradition

profit

15.

Multiple Choice

30 sec

1 pt

Generally, as the price of a product increases,

the supply curve will slope downward

businesses will be willing to supply larger quantities of a product

demand will increase

consumers will be willing to purchase larger quantities of the product

16.

Multiple Choice

30 sec

1 pt

John had $25 to spend. He decided to buy a new shirt instead of going to the amusement park with his friends. John has

purchased a service

made an economic trade-off

made a poor economic decision

ignored the concept of scarcity

17.

Multiple Choice

30 sec

1 pt

In the US, 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

the right of private property

competition

the command economy

scarcity

18.

Multiple Choice

30 sec

1 pt

In every nation on Earth,

workers have the ability to produce the same goods and services

economic resources are owned and controlled by the goverment

individuals have the same wants and needs

people must deal with the problem of scarcity

19.

Multiple Choice

30 sec

1 pt

Another name for the economic system in the United States is

free enterprise

private enterprise

capitalism

all of the above

20.

Multiple Choice

30 sec

1 pt

Which of the following is an economic need?

water

a new TV

a loaded SUV

concert tickets

21.

Multiple Choice

30 sec

1 pt

Which is the first step in the decision-making process?

act on your choice

define the problem

evaluate the choices

identify the choices

22.

Multiple Choice

30 sec

1 pt

Which type of economy is usually centered mainly on meeting people's basic needs?

market economy

traditional economy

mixed economy

command economy

23.

Multiple Choice

30 sec

1 pt

A ________ economy combines elements of the command and market economies.

mixed

traditional

transitional

none of these

24.

Multiple Choice

30 sec

1 pt

The ____ curve for a product illustrates the relationship between the price of a product and the quantity businesses will produce.

supply

demand

profit

opportunity cost

25.

Multiple Choice

30 sec

1 pt

____ means not having enough resources to satisfy every need.

Scarcity

Profit

Demand

Opportunity cost

26.

Multiple Choice

30 sec

1 pt

The ____ price is the point at which supply and demand are equal.

market

profit

command

business

27.

Multiple Choice

30 sec

1 pt

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

opportunity cost

market cost

profit

none of these

28.

Multiple Choice

30 sec

1 pt

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

Demand

Supply

Market Price

Opportunity Cost

29.

Multiple Choice

30 sec

1 pt

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

economic system

opportunity cost

market value

scarcity

30.

Multiple Choice

30 sec

1 pt

All of the following are factors of production EXCEPT

natural resources

human resources

capital resources

market resources

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