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| Brooke is a marine biologist who measures the effect of toxic waste on the marine life. Although she works for the country government, the results of her work are important to many of the local businesses. As a factor of production, Brooke is an example of: | Labor |
| Which of the following would be considered an capital resource. | Computers for a school. |
| Why are resouces considered limited? | There are not enough available for everyone to have as much as they desire. |
| The system by which a country makes decisions about how to deal with its scarcity is calledthe country's | Economy |
| What are three basic economic questions. | What to produce; how to produce; and for whom to produce |
| The study of how to meet unlimited wants with limited resources is called: | Economics |
| Water and air are examples of which of the following resources? | Natural (land) Resources |
| The things that people buy to satisfy their economic wants are known as: | Goods and services |
| A gap between unlimited wants and limited resources creates a condition known as: | Scarcity |
| The process or activity of using goods is called: | Consumption |
| Which of the following is an economic good? | Jogging Shoes |
| Which is an economic service? | Getting a car washed |
| A time period in which more people are finding jobs, more consumers are purchasing products, and more businesses are beginning to invest in new inventory is called a phase of: | Recovery |
| Which of the following is a characteristic of a traditional economic system? | Decisions are based strictly on the way things have always been done |
| The most common form of business ownership under communism is | Government ownership |
| Another expression describing a communist economic system is a: | Command system |
| The type of economic system under which a country operates is determined by: | How it answers the three basic economic questions |
| An economic system that allows people to own their own businesses, produce what they want, and distribute their products wherever they want is called what kind of system? | Capitalist |
| What type(s) of political systems is/aree associated with command economics? | Communism and socialism |
| In which economic system is the ownership of private property not allowed? | Communism |
| An advantage of socialism is: | Focus on citizens' welfare |
| A characteristic of communism is: | Total employment |
| A characteristic of capitalism is: | Greater competition |
| Market economics is also referred to as: | Capitalism |
| What is "private enterprise"? | A system in which individuals own both major industries and consumer goods |
| Adding information, time, and place utilities to their products would be especially important to businesses engaged in: | Nonprice competition |
| Which of the following is used in America for answering the three basic economic questions of what,how, and for whom? | market economic system |
| Why does the U.S. government not allow businesses to operate as monopolies? | Monopolies do not allow for competition |
| What a customer will pay depending on the value placed on a good, service, or resource is called: | Price |
| The prices paid for goods and service in our economy is largely determined by the interaction of: | Supply and Demand |
| The money a person saves and the things of value they own are known as: | Private property |
| A major incentive for work and production in our society is: | Profit |
| What is the primary factor that enables consumers to buy quality products at fair prices? | Competition |
| Which of the following is an example of nonprice competition? | Free gift wrapping |
| Which of the following companies are most likely to engage in direct competition? | Burger King and McDonald's |
| The most concise definition of business risk is: | Possibility of loss |
| A policy that business will not be undersold is an example of: | Price competition |
| A new promotional campaign resulted in an increase in the demand for milk. How will milk producers most likely react to this situation? | They will increase production of milk. |
| An important economic concept that determines what will be produced, how it will be produced, and who will purchase the products is called: | Supply and Demand |
| The quantity of goods or services that consumers are ready to buy at a given price at a particular time is: | demand |
| The quantity of a good or service that producers are able and willing to sell at a specified price in a given period of time is: | Supply |
| In our free enterprice economy, businesses strive to supply goods and services in direct proportion to: | Demand |
| What "economic law" states that the quantity of a good or service that will be offered for sale varies in direct relation to its selling price? | Law of supply |
| An indication of how changes in price will affect changes in demand is known as: | Elasticity |
| Which of the following terms describes consumers' willingness and ability to buy products? | Demand |
| Which of the following terms describes the amount of goods producers are willing to make and sell? | Supply |
| When the price of a product or service increases, consumer demand will usually: | Decrease |
| Which of the following products would most likely have inelastic demand? | Milk |
| How would a decrease in the demand for cameras affect the demand for film? | Demand would decrease |
