Bus.Adm. Ch1 Practice-Economic Decisions & Systems

Your needs and wants always have a limit, they 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 United States could best be characterized as a command economy.

• True
• False

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

• True
• False

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

• True
• False

A video game is an example of a product that fulfills a need.

• True
• False

China is the largest producer of goods and services in the world.

• True
• False

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

• True
• False

Capitalism is another name for a market economic system.

• True
• False