Chapter 1 Principles of Business

Front

Tangible products you can purchase to meet your wants and needs are called goods.

Back

True

Answer explanation

Goods are things you can see and touch = tangible

Front

When you decide to buy a jacket instead of a concert ticket, you are making a trade-off.

Back

True

Answer explanation

A trade-off is not concerned with the value or cost of the item.

Front

China is the largest producer of goods and services in the world. True or False?

Back

False

Answer explanation

The United States is the largest producer and consumer.

Front

The basic economic problem is

Back

having unlimited wants and needs but limited economic resources.

Front

Water, trees, and minerals are examples of

Back

natural resources

Answer explanation

They are all raw materials that come from nature.

Front

If you decide to purchase a digital copy of your favorite movie instead of a pair of jeans, the value of the jeans is the

Back

opportunity cost.

Answer explanation

Because you are considering the value of the item.

Front

The basic economic problem results from

Back

scarcity.

Answer explanation

Scarcity is defined as not having enough resources to satisfy every need and want.

Front

The means through which goods and services are produced are called

Back

economic resources.

Answer explanation

All goods and services utilize one or more of the economic resources: Human, Capital, or Natural

Front

All of the following are capital resources EXCEPT: a pickup truck, a factory, lumber, employees

Back

employees

Answer explanation

Employees are a Human Resource.

Front

A video game is an example of a product that fulfills a need.

Back

False

Answer explanation

Since you can live without a video game, it is a want not a need.