Business Essentials - Chapter 1

Raw materials supplied by nature

• natural resources
• consumers
• human resources
• goods

Products and money used in the production of goods and services are called natural resources.

• True
• False

1st step in econ decision-making process is to evaluate the advan and disadvan of each choice

• True
• False

When you give up something to have something else.

• wants
• services
• trade-off
• goods

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

• True
• False

Which of the following is NOT characteristic of capitalism?

• freedom of choice
• government ownership of resources
• the profit motive
• competition among businesses

Mismatch of unlimited products/resources and limited economic wants/needs is called the basic economic problem

• True

• False

Those who determine which products and services will be available for sale.

• goods
• producers
• human resources
• services

Things that are required in order to live.

• wants
• needs
• services
• natural resources 

Each of the following is a need EXCEPT

• food and shelter
• clothing
• a high-end sports car
• clean air