Ch 1 Economic Decisions

Goods and services are only purchased by individuals, not businesses.

• True
• False

Nations have different economic resources, but they all have the same economic needs and wants.

• True
• False

A lack of competition will result in higher prices for goods and services.

• True
• False

As the price of a product increases...

• demand will increase
• supply will decrease
• consumers will purchase larger quantities
• producers will supply larger quantities

You have $25. You decided to go to the movies instead of buying a new shirt. The opportunity cost of your decision is...

• $25
• going to the movies
• buying a new shirt
• all of these

What is the first step in the economic decision-making process?

• define the problem
• identify the choices
• evaluate the choices
• review your decision

What is the last step in the economic decision-making process?

• make a decision
• act on your choice
• review your decision
• define the problem

Which of the following is an important principle of the U.S. economic system?

• competition
• private property
• profit
• all of these

The largest producer and consumer of goods and services in the world is China.

• True
• False

In every country people must make decisions because of scarcity.

• True
• False