Business Management Chapters 8 & 9

Economics is the study that relates to producing and using good and services to satisfy human wants.

• True

• False

A robot on a car assembly line is an example of a consumer good.

• True

• False

Capital goods are needed to produce consumer goods and services.

• True

• False

Countries that adopt a market economy are often dictatorships.

• True

• False

Privatization occurs when a government provides a good or service that was formerly provided by a business.

• True

• False

As the demand for a product decreases, the price of the product usually increases.

• True

• False

A change in the demand or supply of a product can cause a change in the price of a product.

• True

• False

Consumers help decide what will be produced as well as how much will be produced.

• True

• False

Competition among businesses is limited mainly to price competition.

• True

• False

Production decreases and unemployment increases during recessions.

• True

• False