Unit 1 Economic Basics Review

What must businesses do to remain operational?

• Maintain a high number of employees
• Continually improve value for consumers and society
• Make profit
• Avoid competition

Which of the following is true about businesses and their impact on the economy?

• They do not influence job creation.
• They provide individuals with jobs.
• They reduce the need for consumer spending.
• They focus only on reducing costs.

How can businesses gauge if consumers are satisfied with their products?

• By assessing the number of employee complaints
• By observing the level of consumer interest and profit
• By increasing the prices of their products
• By limiting their production

Which of the following statements is accurate about consumer wants and needs?

• They are static and do not evolve over time.
• They change and evolve based on various factors.
• They only change during economic downturns.
• They remain constant regardless of trends.

According to basic business principles, which should be prioritized?

• Wants over needs
• Needs over wants
• Both equally
• Neither

What is the primary economic problem faced by society?

• Excess resources
• Overproduction
• Limited resources
• Unlimited wants

Which of these is NOT considered one of the three main resources?

• Money
• Labor
• Exchange
• Materials

What question is NOT typically asked by businesses to make the most of their limited resources?

• What materials do we need to buy?
• How do we produce these goods?
• Who are we providing these products for?
• What is the weather forecast?

What is the role of a business in the economy?

• To minimize consumer choices
• To focus solely on profit
• To provide goods and services that improve lives
• To avoid competition

Which term best describes the activity of producing and selling goods or services?

• Economic activity
• Consumer behavior
• Market research
• Supply chain