Chapter One - Economic Decisions and Systems

Question 1

The basic economic problem is

Accepted Answer

unlimited wants and needs and limited resources

Question 2

If sellers set a price to high there will be a

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surplus, shortage

Question 3

As competition increases, prices

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decrease

Question 4

The government decides what and how goods are produced in a

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command economy

Question 5

Crude oil is an example of

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natural resources

Question 6

Things that you can see and touch

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goods

Question 7

Another name for Capitalism is

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All answers are correct

Question 8

The amount a consumer is willing to buy at a certain price is known as

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demand

Question 9

The largest producer of goods and services

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United States

Question 10

Resources are owned and controlled by the people in a

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market economy

Question 11

The value of the next best alternative is

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opportunity cost

Question 12

Economic freedom is limited in a(n)

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command economy

Question 13

A person who takes a risk and starts a business is a(n)

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entrepreneur

Question 14

Point where demand and supply are equal

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market price

Question 15

The first step in the decision making process is

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define the problem

Question 16

As competition increases, prices

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usually decrease

Question 17

The process of choosing which want among several will be satisfied is

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economic decision making

Question 18

Tangible products you can purchase to meet your needs or wants are called

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goods

Question 19

As demand increases, prices usually

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increase

Question 20

A flat screen tv is an example of a

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Want

Questions 20