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WorksheetsIntro to Business- Chapter 1 Test Review
Total questions: 30
Worksheet time: 30mins
Name
Class
Date
1.
All economic resources have a limited supply.
a)
True
b)
False
2.
Things that are required in order to live are known as wants.
a)
True
b)
False
3.
Buildings, equipment and supplies are examples of natural resources.
a)
True
b)
False
4.
A person who buys and uses goods and services is called a consumer.
a)
True
b)
False
5.
Communism refers to the private ownership of resources by individuals rather than by the government.
a)
True
b)
False
6.
What is the final step of the decision-making process?
a)
review your decision
b)
act on your choice
c)
make a decision
d)
define the problem
7.
Who owns the economic resources in a market economy?
a)
business people and entrepreneurs but not consumers
b)
the tribal elders
c)
the people of the country
d)
the government
8.
Every nation must decide
a)
what combination of resources will best suit its circumstances
b)
which wants and needs are most crucial
c)
which goods and services to produce
d)
all of the above
9.
Which of the following scenarios will probably cause prices to drop?
a)
many companies begin producing a product in relatively high demand
b)
a new snack food is very popular, and only one company produces it
c)
half of the world's diamond mines shut down production
d)
A big snowstorm is approaching, and the only hardware store in town has just a few snow shovels left in stock.
10.
If everybody had an unlimited supply of economic resources, which of the following would not exist?
a)
wants
b)
capitalism
c)
scarcity
d)
needs
11.
Goods
a)
must be provided to you at the time you want to consume them
b)
are things you purchase only after your basic needs are met
c)
are things you can see and touch
d)
have no physical characteristics
12.
People producing goods and services are called
a)
capital resources
b)
human resources
c)
limited resources
d)
natural resources
13.
The rivalry among businesses to sell their goods and services is known as
a)
cornering the market
b)
competition
c)
capitalism
d)
entrepreneurship
14.
Which of the following is NOT an especially important principle of the U.S. economic system?
a)
freedom of choice
b)
private property
c)
tradition
d)
profit
15.
Generally, as the price of a product increases,
a)
the supply curve will slope downward
b)
businesses will be willing to supply larger quantities of a product
c)
demand will increase
d)
consumers will be willing to purchase larger quantities of the product
16.
John had $25 to spend. He decided to buy a new shirt instead of going to the amusement park with his friends. John has
a)
purchased a service
b)
made an economic trade-off
c)
made a poor economic decision
d)
ignored the concept of scarcity
17.
In the US, you can own anything you want and decide what you want to do with it, as long as it does not violate the law. This describes the principle of
a)
the right of private property
b)
competition
c)
the command economy
d)
scarcity
18.
In every nation on Earth,
a)
workers have the ability to produce the same goods and services
b)
economic resources are owned and controlled by the goverment
c)
individuals have the same wants and needs
d)
people must deal with the problem of scarcity
19.
Another name for the economic system in the United States is
a)
free enterprise
b)
private enterprise
c)
capitalism
d)
all of the above
20.
Which of the following is an economic need?
a)
water
b)
a new TV
c)
a loaded SUV
d)
concert tickets
21.
Which is the first step in the decision-making process?
a)
act on your choice
b)
define the problem
c)
evaluate the choices
d)
identify the choices
22.
Which type of economy is usually centered mainly on meeting people's basic needs?
a)
market economy
b)
traditional economy
c)
mixed economy
d)
command economy
23.
A ________ economy combines elements of the command and market economies.
a)
mixed
b)
traditional
c)
transitional
d)
none of these
24.
The ____ curve for a product illustrates the relationship between the price of a product and the quantity businesses will produce.
a)
supply
b)
demand
c)
profit
d)
opportunity cost
25.
____ means not having enough resources to satisfy every need.
a)
Scarcity
b)
Profit
c)
Demand
d)
Opportunity cost
26.
The ____ price is the point at which supply and demand are equal.
a)
market
b)
profit
c)
command
d)
business
27.
When you make an economic choice, the _______ is the value of the next-best alternative you did not choose.
a)
opportunity cost
b)
market cost
c)
profit
d)
none of these
28.
___ is the quantity of a good or service that consumers are willing and able to buy.
a)
Demand
b)
Supply
c)
Market Price
d)
Opportunity Cost
29.
A nation's plan for answering the three key economic questions is called its
a)
economic system
b)
opportunity cost
c)
market value
d)
scarcity
30.
All of the following are factors of production EXCEPT
a)
natural resources
b)
human resources
c)
capital resources
d)
market resources
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