Unit 1 The Economy and You

What drives the economy?

• goods and services

• wants and needs

• resources

• consumers

Which is NOT true of public wants?

• They are widely shared by many.

• Government satisfies public wants.

• They are often considered private.

• Examples include highways and parks.

Which is a name for items people can use to make or obtain what they need or want?

• resources

• goods

• swervices

• products

Which is true of resources?

• Resources are unlimited

• Businesses and government lack resources.

• Insurance and tourism are examples of resources.

• Resources are limited.

What should you do before making a decision?

• Determine the pros and cons of alternatives.

• Satisfy your wants and needs.

• Think of another decision you have made.

• Make the best use of limited resources.

Which question would best help you evaluate a decision after you put it into effect?

• What resources are available to me?

• What are my needs and wants?

• Would I make the same choice again?

• What is the problem and what are my options?

Which is true of both personal and business decisions?

• They should be made independently.

• They should be made without regard for consequences.

• They should consume the most resources available.

• The should be consistent with values and goals.

What is a commercial activity that seeks profit by providing goods in exchange for money?

• profit

• market research

• competition

• a business

What is profit?

• commercial activity

• motivation and wealth

• money remaining after cost have been paid

• an opportunity to earn a better living

Which is not true of businesses?

• They pay taxes and provide jobs.

• The wealth they create benefits the entire community.

• They are rewarded with profits by satisfying consumers

• They can survive without profits.