Test bank for principles of business 9th edition by dlabay

Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Name:   Class:   Date:  Chapter 01 - Economic Decisions and Systems 1. Things that are required in order to live are known as wants a. True b. False ANSWER:  False 2. Goods and services are purchased by businesses as well as by individuals a. True b. False ANSWER:  True 3. Buildings, equipment, and supplies are examples of natural resources a. True b. False ANSWER:  False 4. All economic resources have a limited supply a. True b. False ANSWER:  True 5. The basic economic problem results from not having enough resources to satisfy every need a. True b. False ANSWER:  True 6. The final step in the decision-making process is to select the best choice from among the alternatives a. True b. False ANSWER:  False 7. Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs a. True b. False ANSWER:  False 8. Communism refers to the private ownership of resources by individuals rather than by the government a. True b. False ANSWER:  False Copyright Cengage Learning Powered by Cognero Page Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Name:   Class:   Date:  Chapter 01 - Economic Decisions and Systems 9. A person who buys and uses goods and services is called a consumer a. True b. False ANSWER:  True 10. Generally, a lack of competition will result in lower prices for goods and services a. True b. False ANSWER:  False 11. Which of the following is an economic need? a. a new television b. water c. concert tickets d. a loaded SUV ANSWER:  b 12. Goods a. are things you purchase only after your basic needs are met b. have no physical characteristics c. must be provided to you at the time you want to consume them d. are things you can see and touch ANSWER:  d 13. The largest producer of goods and services in the world is a. Japan b. Russia c. the United States d. China ANSWER:  c 14. People producing goods and services are called a. human resources b. natural resources c. capital resources d. limited resources ANSWER:  a Copyright Cengage Learning Powered by Cognero Page Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Name:   Class:   Date:  Chapter 01 - Economic Decisions and Systems 15. If everybody had an unlimited supply of economic resources, which of the following would not exist? a. wants b. capitalism c. scarcity d. needs ANSWER:  c 16. Jonah had $25 to spend. He decided to buy a new shirt instead of going to the amusement park with his friends. Jonah has a. purchased a service b. made an economic trade-off c. made a poor economic decision d. ignored the concept of scarcity ANSWER:  b 17. What is the first step in the decision-making process? a. identify the choices b. define the problem c. evaluate the choices d. act on your choice ANSWER:  b 18. What is the final step of the decision-making process? a. act on your choice b. make a decision c. review your decision d. define the problem ANSWER:  c 19. In every nation on Earth, a. economic resources are owned and controlled by the government b. workers have the ability to produce the same goods and services c. individuals have the same wants and needs d. people must deal with the problem of scarcity ANSWER:  d Copyright Cengage Learning Powered by Cognero Page Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Name:   Class:   Date:  Chapter 01 - Economic Decisions and Systems 20. Every nation must decide a. what combination of resources will best suit its circumstances b. which wants and needs are most critical c. which goods and services to produce d. all of the above ANSWER:  d 21. The government of Erewhon owns and controls all economic resources and decides how those resources will be used. The government even assigns people specific jobs and careers. Erewhon uses which type of economic system? a. market economy b. command economy c. traditional economy d. laissez-faire economy ANSWER:  b 22. Who owns the economic resources in a market economy? a. the people of the country b. the tribal elders c. the government d. businesspeople and entrepreneurs but not consumers ANSWER:  a 23. Which type of economy is usually centered mainly on meeting people’s basic needs? a. market economy b. command economy c. mixed economy d. traditional economy ANSWER:  d 24. Another name for the economic system in the United States is a. private enterprise b. capitalism c. free enterprise d. all of the above ANSWER:  d Copyright Cengage Learning Powered by Cognero Page Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Name:   Class:   Date:  Chapter 01 - Economic Decisions and Systems 25. 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 ANSWER:  c 26. In the United States, 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. scarcity b. competition c. the command economy d. the right of private property ANSWER:  d 27. The rivalry among businesses to sell their goods and services is known as a. competition b. entrepreneurship c. capitalism d. cornering the market ANSWER:  a 28. Generally, as the price of a product increases, a. consumers will be willing to purchase larger quantities of the product b. businesses will be willing to supply larger quantities of the product c. the supply curve will slope downward d. demand will increase ANSWER:  b 29. Which of the following scenarios will probably cause prices to drop? a. A new snack food is very popular, and only one company produces it b. A big snowstorm is approaching, and the only hardware store in town has just a few snow shovels left in stock c. Many companies begin producing a product in relatively high demand d. Half of the world’s diamond mines shut down production ANSWER:  c Copyright Cengage Learning Powered by Cognero Page Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Name:   Class:   Date:  Chapter 01 - Economic Decisions and Systems 30. Which of the following is probably a competitor to Mary’s CD Shop? a. Food Clown grocery store b. B Flat Records and Tapes c. Al’s Garage d. Donna’s Donut Hut ANSWER:  b 31. Things that add comfort and pleasure to your life are  ANSWER:  wants 32. Activities provided for the satisfaction of others and consumed at the time of purchase are ANSWER:  services 33. A(n)   is the risk taker who uses resources in a new way to create a new product or service ANSWER:  entrepreneur 34.   means not having enough resources to satisfy every need ANSWER:  Scarcity 35. When you make an economic choice, the   is the value of the next-best alternative that you did not choose ANSWER:  opportunity cost 36. A nation’s plan for answering the three economic questions is called its  ANSWER:  economic system 37. Personal economic freedom is most limited in a(n)   economic system ANSWER:  command 38. A(n)   economy combines elements of the command and market economies ANSWER:  mixed 39. The money left over from sales after all the costs of operating a business have been paid is called ANSWER:  profit 40.   are individuals and organizations that determine what products and services will be available for sale ANSWER:  Producers Copyright Cengage Learning Powered by Cognero Page Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay Name:   Class:   Date:  Chapter 01 - Economic Decisions and Systems 41.   is the quantity of a good or service that consumers are willing and able to buy ANSWER:  Demand 42. The   curve for a product illustrates the relationship between the price of a product and the quantity businesses will produce ANSWER:  supply 43.   are businesses offering very similar products to the same customers ANSWER:  Competitors 44. The   price is the point at which supply and demand are equal ANSWER:  market 45. Name the three factors of production ANSWER:  The three factors of production are natural resources, human resources, and capital resources 46. Briefly describe the basic economic problem ANSWER:  Individuals and businesses have unlimited wants and needs. The economic resources they have are limited. The mismatch of unlimited wants/needs and limited economic resources is the basic economic problem 47. All economies must answer three economic questions. Name them ANSWER:  1. What goods and services will be produced? 2. How will the goods and services be produced? 3. What needs and wants will be satisfied with the goods and services produced? 48. Explain what is meant by the saying that consumers “vote” with their dollars every time they buy products in the marketplace ANSWER:  When consumers buy something, they send a message to businesses regarding their buying preferences, helping to direct the use of resources. Businesses make decisions on what goods and services to produce based on how they decide to use their resources. When consumers buy a large quantity of a certain product, they are telling businesses to continue making that particular item Copyright Cengage Learning Powered by Cognero Page Full file at https://TestbankDirect.eu/Test-Bank-for-Principles-of-Business-9th-Edition-by-Dlabay ... https://TestbankDirect.eu /Test- Bank- for- Principles- of- Business- 9th- Edition- by- Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu /Test- Bank- for- Principles- of- Business- 9th- Edition- by- Dlabay. .. https://TestbankDirect.eu /Test- Bank- for- Principles- of- Business- 9th- Edition- by- Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file at https://TestbankDirect.eu /Test- Bank- for- Principles- of- Business- 9th- Edition- by- Dlabay Name: ... Learning Powered by Cognero Page Full file at https://TestbankDirect.eu /Test- Bank- for- Principles- of- Business- 9th- Edition- by- Dlabay Test Bank for Principles of Business 9th Edition by Dlabay Full file