Introduction To Business Midterm Review

Unemployment is the highest during a recession.

• true

• false

Corporations are the most common type of business in the United States.

• true

• false

Tangible products you can purchase to meet your wants and needs are called goods. 

• true

• false

When you decide to buy a jacket instead of a concert ticket, you are making a trade-off

• true

• false

Capitalism is another name for a traditional economic system. 

• true

• false

The basic economic problem is

• having unlimited wants and needs but limited economic resources

• deciding what goods and services to produce

• identifying the goods and services available to you

• determining how to satisfy needs and wants.

An important principle of the U.S. economic system is 

• the right to private property

•  the freedom of choice

• competition

• all of the above

If freezing weather damages orange crops in Florida

• the demand for oranges will decrease 

•  the price of oranges will increase

• the supply of oranges will remain unchanged

•  the price of orange juice will decrease.

Water, air, and minerals are examples of

• consumer resources

• natural resources

• human resources

• capital resources

If you decide to purchase a DVD of your favorite movie instead of a pair of jeans, the value of the jeans is the

• market price 

• profit

•  opportunity cost

• trade-off price