Final Review

Things that are required in order to live are known as wants.

• True

• False

All economic resources have a limited supply.

• True

• False

Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs.

• True

• False

A person who buys and uses goods and services is called a consumer.

• True

• False

Jonah had $25 to spend. He decided to buy a new shirt instead of going to the amusement park with his friends. Jonah has

• purchased a service.

• made an economic trade-off.

• made a poor economic decision.

• ignored the concept of scarcity.

Every nation must decide

• what combination of resources will best suit its circumstances.

• which wants and needs are most critical.

• which goods and services to produce.

Who owns the economic resources in a market economy?

• the people of the country

• the tribal elders

• the government

• businesspeople and entrepreneurs but not consumers

The rivalry among businesses to sell their goods and services is known as

• competition.

• entrepreneurship.

• capitalism.

• cornering the market.

Generally, as the price of a product increases,

• consumers will be willing to purchase larger quantities of the product.

• businesses will be willing to supply larger quantities of the product.

• the supply curve will slope downward.

• demand will increase.

All businesses make products.

• True

• False