Business Essentials

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

• is in limited supply
• not made in America.
• not test-marketed
• readily available

“Economic votes” are cast by consumers each time they

• visit a business
• make a purchase.
• respond to a survey.
• participate in market research.

What determines whether an economic product is an industrial product or a consumer product?

• The price of the product
• The origin of the product
• Who buys and uses the product
• Who produces the product

A car manufacturer receives a shipment of bolts that are going to be used in the production of automobiles. What type of industrial product would the bolts be?

• Parts
• Supplies
• Equipment
• Materials

Which of the following statements regarding economic resources is true:

• As businesses grow and become more complex, they typically require fewer resources.
• Industrialized nations typically require fewer capital goods than developing countries.
• Similarly sized businesses within the same industry usually use identical resources.
• Natural resources, human resources, and capital goods are often referred to as factors of production.

Automation involves replacing human resources with

• natural resources.
• capital goods
• raw materials.
• consumer goods.

Offering higher wages, employee-assistance programs, and benefits are responses to limited

• human resources.
• noneconomic resources.
• capital goods.
• natural resources.

Which of the following situations involves finding another source (another place to get the same resource) of a limited natural resource:

• Replacing oil with natural gas
• Conserving the oil that we use
• Searching for oil on the ocean floor
• Paying a higher price for oil

Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is

• creating scarcity.
• a producer.
• increasing distribution.
• economizing.

John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?

• New pair of jeans
• No opportunity cost was involved.
• $40
• Trip to amusement park