Business, Marketing & Finance Chapter 1 Review

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

• True

• False

Goods and services are purchased by businesses as well as by individuals.

• True

• False

Which of the following is an economic need?

• a loaded SUV

• a new television

• water

• concert tickets

The largest producer of goods and services in the world is

• Russia

• China

• United States

• Japan

If everybody had an unlimited supply of economic resources, which of the following would not exist?

• capitalism

• wants

• needs

• scarcity

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

• made an economic trade-off

• made a poor economic decision

• purchased a service

• ignored the concept of scarcity

What is the first step in the decision-making process?

• act on your choice

• define the problem

• identify the choices

• evaluate the choices

In every nation on Earth,

• individuals have the same wants and needs

• people must deal with the problem of scarcity

• workers have the ability to produce the same goods and services

• economic resources are owned and controlled by the government

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

• all of the above

Another name for the economic system in the United States is

• private enterprise

• capitalism

• free enterprise

• all of the above