Unit 1 Review - Economic Decisions and Systems

Your needs and wants never end.

• TRUE

• FALSE

The mismatch of unlimited wants and needs and limited economic resources is called the basic economic problem.

• TRUE
• FALSE

The United States could best be characterized as a command economy.

• TRUE
• FALSE

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

• TRUE
• FALSE

In a market economy, buying decisions are made by consumers.

• TRUE
• FALSE

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

• TRUE
• FALSE

If many consumers want a particular service, its price will probably go up.

• TRUE
• FALSE

The higher the price, the higher the producer�s profits.

• TRUE
• FALSE

Which of the following is a consumer?

• a business
• an individual
• the government
• all of the above are consumers

The value of the next-best alternative that you did not choose is called

• Trade-off cost
• scarcity
• opportunity cost
• economic cost