PoB Unit 5 Review

Which occurs when the supply of individuals who are able and willing to work diminishes?

• Capital goods become unlimited.

• Capital goods become limited.

• Human resources become limited.

• Human resources become unlimited.

Which is an example of an economic service?

• car stereo

• tennis shoes

• baseball glove

• concert ticket

Adrian and Bailey own a salon. Adrian is a nail technician and Bailey is a cosmetologist. Adrian gives Bailey a pedicure. Bailey gives Adrian a haircut. They do not pay money for the services provided. What does this demonstrate?

• exchange

• rationing

• scarcity

• trade-off

A local dry cleaner that also launders and presses shirts is selling:

• industrial supplies.

• specialty goods.

• tangible items.

• consumer services.

A business that begins selling winter holiday decorations in late autumn is creating what type of utility?

• time
• place
• form
• possession 

Equilibrium price of a good or service is determined by trial and error and exists when:

• research shows what the market will tolerate.

• the amount supplied is equal to the amount demanded.

• businesses total their costs and markup.

• businesses compute the average selling price in the area.

The usefulness of a product to consumers is referred to as product:

• scarcity

• utility

• allocation

• consumption

Which situations would cause prices to rise?

• The corn crop is unusually large one summer.

• Insects destroy a large cotton crop.

• Animal rights activists march in front of a fur store.

• A newspaper article describes poor service provided by a hotel.

The desire for which item(s) would be considered a noneconomic want?

• a car

• nutritious food

• a walk

• new clothing

Which is a natural resource that can be renewed through people's efforts?

• Water

• Crude oil

• Trees

• Mineral deposits