Intro to Business - Test Review - Chapters 1-3

It is not always easy to determine the products and services that are needs and those that are wants.

• True. People and businesses have different uses for products and services.

• False

Which of the following would an economist most likely classify as a need?

• gasoline

• a tv

• a part-time job to earn extra money

• a high school diploma

An example of a natural resource is

• sunlight

• fishing net

• computer programmer

• money

List the three types of economic resources.

The basic economic problem is that consumers have too many products and services to choose from.

• False. The basic economic problem is satisfying unlimited wants and needs with limited resources.

• True

The decision-making process is best to use when

• you already know the choice you will make.

• you have adequate time to identify and analyze several choices.

• groups rather than individuals are making a choice.

• you don't have enough money to pay for any of the choices.

John has two hours before having to go to his part-time job. He is deciding between studying for a math exam and taking a nap. If John chooses to take a nap, the opportunity cost of his decision is

• the rest he is getting

• the score he will earn on the math exam

• the wages from his part-time job

• all of the above

Which of the following addresses the economic question of how to produce?

• growing corn instead of potatoes

• requiring individuals to work in a particular career

• producing more capital goods and fewer consumer products

• selling natural resources to other countries

In which of the following economic systems is the government's role most limited?

• mixed

• market

• traditional

• communism

The primary reason business owners make investments and take risks is to

• make a profit

• satisfy customer needs

• develop new products

• make their own decisions