Ch 4 - Economics

The basic economic problem is

In this kind of economy, the government owns and controls important resources and makes the decisions about what will be produced and consumed

• market
• controlled/command
• free
• mixed

Marketers are most concerned with

• macroeconomics
• microeconomics
• minieconomics
• megaeconomics

When a business offers to sell products to customers on credit (credit cards, payment plans, etc.), what kind of utility is it offering to customers

• Place
• Form
• Time
• Possession

If there is a very large supply of a product, consumers will usually

• buy as much of the product as they can
• place a lower value on it
• pay more for it than they usually would
• refuse to buy the product at all

Changes to the physical parts of a product to better satisfy needs and wants results in this type of utility.

• time
• place
• form
• possession

The law of demand states that

• as the price of a product goes up, the quantity demanded will go up
• as the price of a product goes up, the quantity demanded will go down
• as the price of a product goes up, the quantity demanded will remain the same

The opposite of pure competition is a

• monopolistic competition
• oligopoly
• monopoly
• private enterprise

This term means the use of resources to obtain the greatest profit

• scarcity
• profit motive
• supply
• utility

The amount of satisfaction a consumer receives from the consumption of a particular product or service is referred to as

• profit motive
• scarcity
• economic utility
• macroeconomics