1. Chapter 1 Review

2. True or False
Your needs and wants never end
True

3. Multiple choice Which of the following is a consumer? A business
An individual
The government
All of the above d

4. True or false The higher the price, the higher the producer’s profits.

5. Multiple choice All of the following is a need Except:
A good education
Clothing
Fine jewelry
Clean air C

6. True or false
Products and money used in the production of goods and services are called natural resources
false

7. Multiple choice
Which of the following is not characteristic of a capitalistic economy?
A freedom of choice
Government ownership of resources
The profit motive
Competition among businesses B

8. True or false
If many consumers want a particular service, its price will probably go up.
true

9. Multiple choice
The means through which goods and services are produced are called
Economic resources
Needs
Spending opportunities
Economic choices a

10. Multiple choice All of the following is a capital resource except
A pickup truck
A factory
Lumber
Employees d

11. True or false
If heavy competition for a product keeps its price low, businesses will be very motivated to offer the product for sale.
false

12. Multiple choice Personal economic freedom is most limited in a
Command economy
Market economy
Mixed economy
Traditional economy a

13. True or false
The mismatch of unlimited wants and needs and limited economic resources is called the basic economic problem.
true

14. Multiple choice
The value of the next-best alternative that you did not choose is called
Tradeoff cost
Scarcity
Opportunity cost
Economic cost C

15. True or false
In a market economy, buying decisions are made by consumers.
true

16. Multiple choice
When a country decides to focus on advanced technology and a skilled labor force, it is primarily answering which of the basic economic questions?
What to produce?
How to produce?
Which needs to satisfy?
Which wants to satisfy? B

17. True or false
In a market economy, buying decisions are made by consumers.
true

18. True or false
The first step in the economic decision-making process is to evaluate the advantages and disadvantages of each choice.
False

19. True or false
The united states could best be characterized as a command economy.
false

20. True or false
The right of private property means you can own, use or dispose of things of value.
True

21. Multiple choice
In which of the following situations is demand most likely to be reduced?
Customers see a number of products they believe will satisfy a need
Customers cannot find a good substitute for a product they want
When prices for a popular product are reduced
All of the above tend to reduce demand a

22. Multiple choice
The quantity of a good or service that consumers are willing and able to buy is called
Supply
An economic want
Demand
An economic amount c

23. Terms Needs Services Scarcity Natural resources Consumers Goods
Tradeoff
Producers
Wants
Human resources

24. Fill in the blank
Economic resources are sometimes referred to as factors of production.
The process of choosing which wants, among several options, will be satisfied is called economic decision making.
In a traditional economy, goods and services are produced the way they have always been produced.
The rivalry among businesses to sell their goods and services is called competition.
The point where supply and demand are equal is called the market price.