Intro - Ch. 1 Review

iPods are an example of a need

• 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 tradeoff.

• True

• False

Capitalism is another name for a traditional economic system.

• True

• False

Competition forces businesses to search for new ways to satisfy customers' wants and needs.

• True

• False

The market price for a product is the point where demand EXCEEDS supply.

• True

• False

Economists predict future changes in the economy.

• True

• False

The basic economic problem is

• deciding what goods and services to produce

• having unlimited wants and needs but limited economic resources

• determining how to satisfy needs and wants

• identifying the good and services available to you

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

• the right to private property

• freedom of choice

• competition

• all of the answers are correct

If freezing weather damages orange crops in Florida

• demand for oranges will decrease

• supply of oranges will remain unchanged

• price of orange juice will decrease

• price of oranges will increase