Marketing- Chapter 3 Test Review

People's wants and needs are unlimited; in the same way, resources are also unlimited.

• True

• False

The cost of resources is the same no matter what economic system a society uses.

• True

• False

The United States has many characteristics of a market economy.

• True

• False

Individuals who purchase products and services to satisfy needs are producers.

• True

• False

If a need or want is particularly important or strong, a consumer might be willing to spend more money to satisfy it.

• True

• False

If consumers believe there is only one product or brand that meets their needs, they will usually be willing to pay a higher price.

• True

• False

The law of supply states that when the price of a product is increased, less will be supplied; when the price is decreased, more will be supplied.

• True

• False

The point where supply and demand for a product or service is equal is called market price.

• True

• False

The demand curve for businesses in monopolistic competition falls somewhere between that of pure competition and monopoly.

• True

• False

Products that provide great satisfaction have a higher economic utility, while those providing less satisfaction have a lower utility.

• True

• False