Chapter 1 - Economic Decisions & Systems

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

• 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

Communism refers to the private ownership of resources by individuals rather than by the government.

• True

• False

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

• 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

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

• True

• False

All economic resources have a limited supply.

• True

• False

The basic economic problem is the mismatch of unlimited wants and needs and limited economic resources.

• True

• False

In every nation on Earth,

• economic resources are owned and controlled by the government.

• workers have the ability to produce the same goods and services.

• individuals have the same wants and needs.

• people must deal with the problem of scarcity.