BE 2.02 Quiz

What motivates businesses to produce efficiently and sell effectively?

• Profit

• Spending money

A gap between unlimited wants and limited resources creates

• Resources

• Scarcity

Seeing a movie at a theater would be considered a(n) ________ want.

• Economic

• Unlimited

The heart of economics is

• Trade-offs

• Decision-making

What are the three basic economic questions?

• What products will be produced, how will products be produced, and how will products be allocated

• Where will products be produced, when will products be produced, and what products

  will be produced

Which one of the following groups of words best describes wants:

• Limited, unchanging, and competing

• Unlimited, changing, and competing

A large retailer feels that it has a duty to contribute to the well-being of society, so it donates a portion of its proceeds to a charity that helps the environment. The retailer is demonstrating

• Social responsibility

• Wholesaling

Why are resources considered limited?

• There are so many that people must decide which ones to choose at any one time.

• There are not enough available for everyone to have as much of them as desired.

In economics, capital goods include

• Buildings and equipment

• Mental and physical work

_______refects the quantities that consumers are willing and able to buy at various prices during the same time period.

• Supply

• Demand