Intro Ch 1 Quiz

What drives the economy?

• goods and services

• wants and needs

• resources

• consumers

What 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

• services

• products

Which is true of resources?

• Resources are unlimited.

• Businesses and governments 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 needs and wants.

• 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.

• They should be consistent with values and goals.

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

• Profit

• market resesarch

• competition

• a business

What is a profit

• commercial activity

• motivation and wealth

• money remaining after costs 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.