BE Obj. 2.01-03 Practice Questions

An economic good or service that is scarce is one that is

• in limited supply

• not made in America

• readily available

• not test marketed

Farms, mines, and lumber companies are examples of

• builders

• manufacturers

• trade industries

• raw good producers

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good.

• capital

• consumer

• ultimate

• industrial

Each day, a restaurant sends its used linens to a laundry to be cleaned and pressed. In economic terms, the laundry service would be classified as a(n) __________ service.

• consumer

• ultimate

• tangible

• industrial

Which of the following is an industrial good:

• Tires for a tow truck

• Matt's cell phone

• Holiday flowers

• Farri's home computer

Bread for a family would best be classified as a(n) __________ product.

• shopping

• installation

• specialty

• convenience

When prices increase, producers usually:

• increase demand

• decrease supply

• increase supply

• decrease profits

Which occurs when the supply of individuals who are able and willing to work diminishes?

• Capital goods become unlimited

• Capital goods become limited.

• Human resources become limited

• Human resources become unlimited.

Which group of words best describes wants?

• limited, changing, and compensating

• unlimited, changing, and competing

• limited, unchanging, and competing

• unlimited, unchanging, and compensating

Which is a reason that natural resources are considered limited

• People lack training or skills needed to do a job

• Technology has advanced faster than training.

• Some countries are unable to manufacture them.

• The earth has certain boundaries.