ITB Ch. 1 and 2 Test Review

An example of a public want is a family wanting a new car.

• True

• False

Wants that are shared by many people are

• group wants

• public wants

• shared wants

• multiple wants

Most nations have a

• moderate command economy

• pure command economy

• pure market economy

• mixed economy

Two basic types of economic systems are a market economy and a demand economy.

• True

• False

Businesses supply goods and services

• to make a profit

• to benefit the community

• to satisfy their customers' wants.

• to compete with each other.

To avoid failure, a business can modify

• its product

• its service

• its business practice

• all of the above.

Resources are the things necessary for making only what people need.

• true

• false

In a market economy, the higher the price

• the better the quality of the product offered.

• the more profit the business will make.

• the higher the demand for the product.

• the less consumers will buy.

Unlike goods, services are performed for free.

• True

• False

All of the following involve offering services EXCEPT

• banking

• DVDs

• sports and entertainment

• tourism