Ch 1 Principles of Business

Your needs and wants never end.

• True

• False

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 called the basic economic problem.

• True

• False

The first step in the economic decision-making process is to evaluate the advantages and disadvantages of each choice.

• True

• False

The United States could best be characterized as a market economy.

• True

• False

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

• True

• False

In a market economy, buying decisions are made by consumers.

• True

• False

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

• True

• False

All of the following is a need EXCEPT

• a good education

• food

• water

• jewelry

The means through which goods and services are produced are called

• needs

• economic resources

• spending opportunities

• economic choices