Intro to Business- Chapter 1 Test Review

All economic resources have a limited supply.

• True
• False

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

• True
• False

Buildings, equipment and supplies are examples of natural resources.

• True
• False

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

• True
• False

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

• True
• False

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

• review your decision
• act on your choice
• make a decision
• define the problem

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

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

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.

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

• wants
• capitalism
• scarcity
• needs