Chapter 1 Review - Economic Decisions and Systems

_____ refers to the quantity of a good or service that businesses are willing and able to provide.

Market price is determined by all of the following except _____.

Which of the following is not a principle upon which the U.S. economic system is based?

Things that are required in order to live are wants.

Consumers are individuals and organizations that determine what products and services will be available for sale.

In a _____ the resources are owned and controlled by the government.

Which of the following is an example of a service?

An entrepreneur is an economic resource.

Economic decision making is the process of choosing _____.

A demand curve illustrates the relationship between quantity demanded of a product and _____.

In a market economy, a marketplace is always a physical location where economic transactions take place.

_____ include tools and equipment used to produce goods and services.

Most nations of the world can be classified as having a _____.

When many more people wish to purchase a product, its price will tend to _____.

The United States is the largest producer of goods and services in the world.

The first step in the decision-making process is to_____.

Each of the following is one of the three economic questions that must be answered by all nations except_____.

The basic economic problem results from scarcity.

When there are many competitors in a market, individual businesses are not able to easily raise their prices.

The primary reason why businesses invest resources and take risks is to _____.