The Economy and You

The difference between wants and needs is the fact that needs are necessary for survival and wants are not necessary to survive.

• True

• False

Resources limit the number of wants people and businesses can satisfy because few people have enough resources to satisfy all of their needs and wants. It is best to satisfy needs first and then wants.

• True

• False

The decision making process helps you to consider your options and their consequences. It helps you to make the best use of your resources.

• True

• False

Tangible products you can purchase to meet your wants and needs are called services.

• True

• False

When you decide to buy a pair of shoes instead of a concert ticket, you are making a trade-off.

• True

• False

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

• True

• False

Competition is a contest between businesses to win customers.

• True

• False

Business is any commercial activity that seeks profit by providing goods and services to others in exchange for money.

• True

• False

Raw materials supplied by nature are called human resources.

• True

• False

The basic economic problem is the mis-match of unlimited wants/needs and the limited economic resources.

• True

• False