5.01 Economics of Business & Employment

Which is a reason that natural resources are considered limited?

• People lack training or skills needed to do a job.
• Technology has advanced faster than training.
• Some countries are unable to manufacture them.
• The earth has certain boundaries.

Which is an example of an economic service?

• Car stereo
• Tennis shoes
• Baseball glove
• Concert ticket

The desire for which item(s) would be considered a noneconomic want?

• A car
• Nutritious food
• A walk
• New clothing

A local dealership purchased 100 blue pickup trucks, but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating which type of market for blue pickup trucks?

• Buyers
• Discount
• Sellers
• Automotive

A local dry cleaner that also launders and presses shirts is selling:

• Industrial supplies
• Specialty goods
• Tangible items
• Consumer services

Which change provides the most time utility for a consumer?

• Staying open for business on the weekend
• Arriving at a product trade show early
• Shopping for a product in the morning
• Asking for early delivery of a product

A business that begins selling winter holiday decorations in late autumn is creating what type of utility?

• Time
• Place
• Form
• Possession

When prices increase, producers usually:

• Increase demand
• Decrease supply
• Increase supply
• Decrease profits

Equilibrium price of a good or service is determined by trial and error and exists when:

• Research shows what the market will tolerate.
• The amount supplied is equal to the amount demanded.
• Businesses total their costs and markup.
• Businesses compute the average selling price in the area.

A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:

• Distribution
• Opportunity cost
• Efficiency
• Utility