Ch 01 Economic Decisions and Systems

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

• True

• False

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

• True

• False

Buildings, equipment, and supplies are examples of natural resources.

• True

• False

All economic resources have a limited supply.

• True

• False

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

• True

• False

The final step in the decision-making process is to select the best choice from among the alternatives.

• True

• False

Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs.

• True

• False

Communism, as practiced in the former Soviet Union, refers to the private ownership of resources by individuals rather than by the government.

• True

• False

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

• True

• False

Generally, a lack of competition will result in lower prices for goods and services.

• True

• False