Introduction to Business Chapter 1

Products and money used in the production of goods and services are called Natural Resources

• True

• False

The mismatch of unlimited wants and needs and limited economic resources is THE BASIC ECONOMIC PROBLEM

• True

• False

The right of private property means you can own, use, or dispose of things of value

• True

• False

If many consumers want a particular service, its price will probably go up.

• True

• False

_______ include tools and equipment used to produce goods and services

• Capital Resources

• Natural Resources

• Human Resources

When there are many competitors in a market, individual businesses are not able to easily raise their prices.

• True

• False

Economic decision-making is the process of deciding ________.

• How to spend your time

• How to use your income

• Which wants and needs will be satisfied

• Whether to buy a product now or later

The first step in the decision-making process is to _______

• Identify your choices

• Define the problem

• Evaluate Alternatives

• Review your choice

The basic economic problem results from scarcity.

• True

• False

Each of the following is one of the three economic questions that must be answered by all nations except:

• What goods and services will be produced?

• How will the goods and services be produced?

• Who will receive the profits earned when goods and services are produced?

• What needs and wants will be satisfied with the goods and services produced?