Ch 1 Economic Decisions & Systems

Your needs and wants never end.

• True

• False

Products and money used in the production of goods and services are called natural resources.

• True

• False

The first step in the economic decision-making process is to evaluate the advantages and disadvantages of each choice.

• True

• False

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

• True

• False

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

• True

• False

Tangible products you can purchase to meet your wants and needs are called goods.

• True

• False

Competition forces businesses to search for new ways to satisfy customers' wants and needs.

• True

• False

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

• True

• False

The means through which goods and services are produced are called

• economic resources

• needs

• spending opportunities

• economic choices

All of the following are capital resources EXCEPT

• a pickup truck

• a factory

• a hammer

• employees