Intro to Bus Chapter 1 Review

What is the term for the amount of a product that consumers are willing and able to buy at a certain price?

• Supply

• Demand

• Market price

• Capital

Which of the following is NOT one of the four principles of capitalism?

• Private property

• Government ownership of all resources

• Competition

• Freedom of choice

What is the main difference between goods and services?

• Goods are tangible, services are intangible

• Goods are always more expensive

• Services can be stored

• Goods are not sold in markets

Which of the following is considered an economic resource?

• Land

• Fashion

• Weather

• Entertainment

What is the term for the price at which the quantity supplied equals the quantity demanded?

• Surplus price

• Market price

• Discount price

• Wholesale price

Which of the following best describes a need?

• Something required for survival

• Something you wish to have

• A luxury item

• An entertainment product

Which type of economy is characterized by government control over resources and production?

• Market economy

• Command economy

• Mixed economy

• Traditional economy

Which of the following is an example of a service?

• A loaf of bread

• A haircut

• A car

• A book

Which principle of capitalism allows individuals to own and control property?

• Private property

• Competition

• Profit motive

• Freedom of enterprise

What is the main goal of capitalism?

• Equal distribution of wealth

• Maximizing individual profit

• Government planning

• Eliminating competition