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Intro to Business > Chapter 1 test > Flashcards

Chapter 1 test Flashcards

1
Q

the method a country uses to answer the three economic questions

A

economic system

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2
Q

Lady Gaga has $355 to spend. She decided to use the money to buy face paint instead of going to the symphony. Lady Gaga has ________.

A

made an economic tradeoff

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3
Q

3rd largest producer

A

Japan

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4
Q

_______ means not having enough resources to satisfy every need

A

scarcity

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5
Q

not having enough resources to satisfy every need

A

scarcity

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6
Q

If surplus occurs, what can be done to fix the problem?

A

lower the price

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7
Q

______ is the process of choosing which wants and needs will be satisfied

A

economic decision making

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8
Q

What country is the largest producer of goods and services

A

United States

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9
Q

A demand curve illustrates the relationship between quantity demanded and ____

A

price

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10
Q

A ____ is anywhere the economic transactions take place

A

market place

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11
Q

true or false

Both individuals and organizations can be producers

A

true

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12
Q

List the 6 steps of the decision making process.

A
  1. define the problem
  2. identify the choices
  3. evaluate the advantages and disadvantages of each choice
  4. choose one choice
  5. act on your choice
  6. review your choice
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13
Q

When many more people wish to purchase a product it’s price will tend to ____

A

increase

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14
Q

Individuals and organizations that determine what products and services will be available for sale are called ____

A

producers

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15
Q

Which of the following would an economist most likely classify as a need?

  1. gasoline for a florist’s delivery truck
  2. a college degree
  3. a flat screen tv
  4. a part time job to earn extra money
A

gas for a florist’s delivery truck

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16
Q

The primary reason business owners make investments and take risks in a private enterprise economy is to

  1. make a profit
  2. satisfy customer needs
  3. develop new products
  4. meet government requirements
A

make a profit

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17
Q

A person who buys or uses goods and services is called a ____

A

consumer

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18
Q

The money left over from sales after all the costs of operating a business have been paid is called ____

A

profit

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19
Q

Give examples of capital resources.

A

money, machinery, investors, equipment, factories, buildings, computers

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20
Q

______ are businesses offering very similar products to the same customers

A

competitors

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21
Q

____ refers to the quantity of a good or service that businesses are willing and able to provide

A

supply

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22
Q

Things that are not necessary for survival but add pleasure and comfort to your life are called ____

A

wants

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23
Q

As competition increases, prices

  1. usually increase as well
  2. are not affected so will usually not change
  3. usually will decrease
  4. there is no way to predict what will happen to prices due to competition
A

usually will decrease

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24
Q

Which of the following address the economic question of how to produce?

  1. growing corn instead of potatoes
  2. requiring individuals to complete specific types of work
  3. producing more capital goods and few consumer products
  4. selling natural resources to other countries
A

requiring individuals to complete specific types of work

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25
Q

A vacation to Belize would be considered a _____

A

want

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26
Q

____ are things that are required in order to live

A

needs

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27
Q

If the quantity of an item supplied is greater than the quantity of an item demanded, a ___ will occur.

A

surplus

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28
Q

John has two hours before having to go to his part time job. He is deciding between studying for a math exam and taking a nap. If John chooses to take a nap, the opportunity cost of his decision is

  1. the rest he is getting
  2. the score he will earn on the math exam
  3. the wages from his part time job
  4. all of the above
A

the score he will earn on the math exam

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29
Q

The US economy is sometimes referred to as _____ or _____

A

free enterprise or private enterprise

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30
Q

true or false

It is not always easy to determine the products and services that satisfy needs and those that satisfy wants.

A

true

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31
Q

true or false

The basic economic problem is that consumers have too many products and services to choose from.

A

false

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32
Q

Give examples of natural resources.

A

oil, coal, sun, gold, lead, water

33
Q

Capital resources, human resources and natural resources are considered ______ resources

A

economic

34
Q

Give 5 examples of human resources.

A

construction workers, teachers, entrepreneurs, accountants, doctors, farmers

35
Q

In a _____ economy the resources are owned and controlled by the government

A

command

36
Q

An example of a natural resource is

  1. sunlight
  2. a fishing net
  3. a computer programmer
  4. money
A

sunlight

37
Q

______ is the process of choosing which needs and wants will be satisfied.

A

economic decision making

38
Q

A _____ illustrates the relationship between the price of a product or service and the quantity demanded by consumers

A

demand curve

39
Q

What is the second step in the decision making process?

A

identify the choices

40
Q

The basic economic problem results from ____

A

scarcity

41
Q

The decision making process is best to use when

  1. you already know the choice you will make
  2. you are facing a decision with several good alternatives
  3. groups rather than individuals are making a choice
  4. you don’t have enough money to pay for any of the choices
A

you are facing a decision with several good alternatives

42
Q

______ resources include tools and equipment used to produce goods and services

A

capital

43
Q

As competition increases, prices will usually ____

A

decrease

44
Q

_____ consumes more goods and services than any other country in the world

A

America

45
Q

The first step in the decision makign process involves

a. defining the problem
b. setting the goal
c. identifying the choices
d. evaluating alternatives

A

defining the problem

46
Q

Most of the nations of the world can be classified as having a _____ economy

A

mixed

47
Q

What are the 3 factors that determine market price?

A

supply, demand, competition

48
Q

Do businesses and governments deal with scarcity?

A

Yes, businesses have labor shortages and the government may not collect very many taxes

49
Q

If a shortage occurs, what can be done to fixe the problem?

A

increase price

50
Q

The primary reason why business invest resources and take risks is to ____

A

earn a profit

51
Q

In which of the following economic systems is the government’s role greatest?

a. mixed
b. traditional
c. market
d. command

A

command

52
Q

The point where supply and demand are equal is called _____

A

market price / equilibrium

53
Q

An ____ is a risk taker who uses resources to create a new product or service

A

entrepreneur

54
Q

Consumers and businesses make decisions based ont heir own self interests is a characteristic of a ____ economy

A

market

55
Q

In order to determine how available resources will be sued to meet the needs and wants of a country, what 3 questions must be answered?

A
  1. What to produce?
  2. How to produce?
  3. What needs and wants will be satisfied with the goods and services produced?
56
Q

If the quantity of an item demanded is greater than the quantity of an item supplied, a ____ will occur

A

shortage

57
Q

Are human resources necessary in producing and services?

A

Yes, they have to operate machinery or make decisions

58
Q

Larry decided to hang out with his friend, Joe, instead of study for his French exam. Larry got an F on the test and wasn’t able to get into the college he wanted. The value of a good grade on Larry’s french exam is known as the ______

A

opportunity cost

59
Q

economic resources are also known as _____

A

factors of production

60
Q

A _____ is when you give up somethng to have something else

A

trade off

61
Q

____ economy is where the resources are owned and controlled by the people of the country

A

market

62
Q

What is the purpose of a business?

A

provide a good or service, satisfy a want or need

63
Q

What is meant by ‘‘the basic economic problem?”

A

the mismatch of unlimted wants and needs and the limited economic resources

64
Q

_____ are activities provided for the satisfaction of others that are consumed at the same time they are produced.

A

services

65
Q

The fifth step in the decision making process is _____

A

act on your choice

66
Q

Things that satisfy our wants through the efforts of other people or equipment are called _____

A

services

67
Q

The first step inthe decision making process is _____

A

define the problem

68
Q

Explain 2 reasons why wants are unlimited.

A
  1. people change their opinions
  2. once you satisfy one need, another is usually created
69
Q

When confronted with the decision to purchase a new pair of boots or go to dinner and a movie with friends the value of the next best alternative not chosen is called the _____

A

opportunity cost

70
Q

true or false

Supply is the quantity of a good or service that a consumer is willing and able to buy at a particular price.

A

false

71
Q

____ of choice means that you can make economic decisions independently and must accept the consequences of those decisions.

A

freedom

72
Q

Another name for the US economic system is ____

A

capitalism

73
Q

Natural resources are ____ materials supplied by nature

A

raw

74
Q

Things that you can see and touch are called ____

A

goods

75
Q

The first step in the decision making process is ____ (think of the chart you created about you and a celebrity)

A

define the problem

76
Q

An automatic car wash would be an example of a _____

A

service / capital resource

77
Q

The right of ______ means you can own, use or dispose of things of value

A

private property

78
Q

The second largest producer of goods and services in the world is ____

A

China

Intro to Business (41 decks)

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