Intro to Business - Chapter 1

The basic economic problem is:

• Having unlimited wants and needs but limited resources.

• Deciding what goods and services to produce.

• Identifying the goods and services available to you.

• Determining how to satisfy needs and wants.

An important principle of the U.S. economic system is:

• Private Property

• Freedom of Choice

• Competition

• These are all correct.

If freezing weather damages orange crops in Florida:

• The demand for oranges will decrease.

• The price of oranges will increase.

• The supply of oranges will remain unchanged.

• The price of orange juice will decrease.

Water, air, and minerals are examples of:

• Consumer Resources

• Natural Resources

• Capital Resources

• Human Resources

If you decide to purchase a movie instead of a pair of jeans, the value of the jeans is the:

• Market Price

• Profit

• Opportunity Cost

• List Price

Resources are owned and controlled by the people of the country.

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy

The government decides what and how goods are produced.

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy

Workers often use hand tools and readily available natural resources.

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy

Countries transitioning from a command economy usually adopt this type of economic system:

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy

Consumers base their decisions on their own self-interest:

• Command Economy

• Market Economy

• Traditional Economy

• Mixed Economy