Ch.1 Review

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

• True

• False

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

• 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