Business Essentials Test Review 1

Front

What is the economic problem?

Back

We have unlimited wants but limited resources.

Front

Which is the strongest motivating factor in a free market economy?

Back

Ability to earn a profit

Front

In a market economy, who decides on the prices of goods and services? Options: government, buyers and sellers, firms, local leaders

Back

buyers and sellers

Front

When demand exceeds supply you have ________________

Back

Scarcity

Front

The social science that deals with the production, distribution, and consumption of goods and services

Back

Economics

Front

Raw materials supplied by nature

Back

natural resources

Front

When you give up something to have something else.

Back

trade-off

Front

In a command economy, buying decisions are made by consumers.

Back

False

Front

The value of the next-best alternative that you did not choose is called

Back

opportunity cost

Front

Those who buy and use goods and services.

Back

consumers