The basic economic problem results from not having enough resources to satisfy every need.

• True

• False

Socially responsible actions benefit employees and the community while costing the company nothing.

• True

• False

Goods and services are purchased by businesses as well as by individuals.

• True

• False

Larry’s Trucking Company is located in Columbus, Ohio. The company delivers products to its sole customer, a factory in Toledo, Ohio, twice every day. Both the State of Ohio and the federal government are responsible for regulating the business actions of Larry’s Trucking Company.

• True

• False

A person who buys and uses goods and services is called a consumer.

• True

• False

Business cycles are the recurring ups and downs of gross domestic product.

• True

• False

A country can have an absolute advantage in only one area.

• True

• False

One component of gross domestic product is the value of a country’s exports less the value of the imports into the country.

• True

• False

All written contracts are legal.

• True

• False

Things that are required in order to live are known as wants.

• True

• False