POBF Objective 5.01

Which situations would cause prices to rise?

• The corn crop is unusually large one summer

• Insects destroy a large cotton crop

• Animal rights activists march in front of a fur store

• A newspaper article describes poor service provided by a hotel

Which is a reason that natural resources are considered limited?

• People lack training or skills needed to do a job

• Technology has advanced faster than training

• Some countries are unable to manufacture them

• The earth has certain boundaries

Which change provides the most time utility for a consumer?

• Staying open for business on the weekend

• Arriving at a product trade show early

• Shopping for a product in the morning

• Asking for early delivery of a product

A killing frost destroys 80% of Florida's citrus crop. This will most likely create a:

• pure competition.

• a buyer's market.

• a seller's market.

• inelastic demand.

A business that begins selling winter holiday decorations in late autumn is creating what type of utility?

• Time

• Place

• Form

• Possession

Which is an example of an economic service?

• Car stereo

• Tennis shoes

• Baseball glove

• Concert ticket

One factor that might limit the human resources available for certain jobs is a/an:

• organized training program.

• appealing company image.

• good safety record.

• inadequate pay level.

Which is an external factor that affects market price?

• Location of items in store

• Consumer buying power

• Number of items in stock

• Available credit terms

A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:

• distribution.

• Opportunity cost.

• efficiency.

• utility.

Adrian and Bailey own a salon. Adrian is a nail technician and Bailey is a cosmetologist. Adrian gives Bailey a pedicure. Bailey gives Adrian a haircut. They do not pay money for the services provided. What does this demonstrate?

• Exchange

• Rationing

• Scarcity

• Trade-off