Principles of Business Ch.1/2 Test Review

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

• true
• false

Goods and services are purchased by businesses as well as by individuals.

• true
• false

Buildings, equipment, and supplies are examples of natural resources.

• true
• false

Lawyers, farmers, and construction workers are examples of human resources.

• true
• false

The basic economic problem results from not having enough resources to satisfy every need.

• true 
• false

Which of the following is an economic need?

• a new television
• water
• concert tickets
• a loaded SUV

People producing goods and services are called

• human resources
• natural resources
• capital resources
• limited resources

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

• identify the choices
• define the problem
• evaluate the choices
• act on your choice

In every nation on Earth,

• economic resources are owned and controlled by the government.
• workers have the ability to produce the same goods and services.
• individuals have the same wants and needs.
• people must deal with the problem of scarcity.

A government that owns and controls all economic resources and decides how those resources will be used.  The government even assigns people specific jobs and careers. This type of government uses which type of economic system?

• market economy
• command economy
• traditional economy
• laissez-faire economy