Intro To Business-Chapter 1 Assessment Review

Our 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 US is an example of a command economy.

• True

• False

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

• True

• False

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

• True

• False

If heavy competition for a product keeps its price low, businesses will be very motivated to offer the product for sale.

• True

• False

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

• True

• False

The higher the price of an item, the higher the producer's profits.

• True

• False