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POB - Ch. 1

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Marcus' Audio has priced its best selling speakers at $499. The majority of his customers are willing to pay $499 for those speakers. This is known as ___________.

a)

trade-off

b)

opportunity cost

c)

market price/equilibrium

d)

surplus

2.

Suppliers/Producers decide what products and services will be available for sale.

a)

True

b)

False

3.

The factor LEAST likely to influence the demand for a product would be __________________.

a)

changes in personal income

b)

changes in technology for SUPPLIERS

c)

changes in trends

d)

change in number of buyers (population)

4.

The money a business uses to pay its employees is called a _____________ resource.

a)

capital

b)

natural

c)

human

d)

economic

5.
All economies face the basic economic problem of scarcity of MONEY.
a)
True
b)
False
6.

When there are many competitors in a market, individual businesses are not able to easily raise their prices.

a)

True

b)

False

7.

The primary reason why businesses invest resources and take risks is to __________________.

a)

create jobs

b)

produce goods/services

c)

make a profit

d)

produce better products

8.

A hair cut at the barber shop would be considered a __________.

a)

good

b)

service

c)

both

d)

neither

9.

Max has 2 hours before having to go to his part-time job. He is deciding between taking a nap or doing his homework. If Max chooses to take a nap, the opportunity cost of his decision is ________________.

a)

the rest that he is getting

b)

the wages from his part-time job

c)

the poor grade his will get for not doing his homework

d)

the risk of oversleeping and being late for work

10.

The United States participates in this type of economic system.

a)

command economy

b)

traditional economy

c)

market economy

d)

mixed economy