1. In economics, people often use what two terms synonymously?
purchase and want
want and need
want and purchase
2. Which of the following is sometimes considered a factor of production by some economists.
labor
entrepreneurship
technology
3. Which of the following is considered a want?
food
shelter
car
clothing
4. What types of economies operate without the help of money?
barter
command
monetary
5. Which of the following is a question that all nations must address?
For whom to produce?
How much to produce?
Where to produce?
6. Almost all existing economies can be described as what type of economy?
traditional
command
mixed
7. In a traditional economy a child s career is most dependent on:
education
his/her parent(s) career
individual interest
8.
A capitalist system can also be called a/an:
(
market economy
command economy
mixed economy
9. As a consumer, the first decision you must make is:
whether to buy an item
where to buy an item
how to gather information
10. Almost all steps in consumer decision making involve:
critical analysis of prices
consideration of supply versus demand
opportunity costs
11. What is the next step after making the decision to purchase a good or service?
gather information
make the purchase
consider the opportunity cost
12. When did the Consumerism movement begin?
1950s
1960s
1970s
13. The amount of stores in the United States that goods can be purchased in, number in the:
hundreds
thousands
millions
14. For consumers it is important to make sure savings are not outweighed by:
cost of transportation
comparison shopping
age of the product
15. What is the name of the type of store that offers bulk items at low costs?
neighborhood stores
convenience stores
club warehouses
16. What is the name of the type of stores that are open longer hours but have the trade off of higher prices?
neighborhood stores
convenience stores
club warehouses
17. A direct relationship between supply and demand, based on increasing prices, is best shown with the:
upward sloping curve of the supply curve.
downward sloping curve of the supply curve.
upward sloping curve of the demand curve.
18. How many factors determine supply?
2
4
6
19. As the price of a good decreases, the quantity demanded _____ and the quantity supplied _____.
increases, increases
decreases, decreases
increases, decreases
20. A shortage of goods causes prices to
decrease
increase
remain the same
21. The process in which a business estimates the cost of an action versus the benefits of an action is called
financing
cost benefit analysis
profit margin
22. If a business borrows money for one to ten years they have secured
short term financing
intermediate financing
long term financing
23. If a business borrows money for up to one year they have secured
short term financing
intermediate financing
long term financing
24. Long term financing is obtained by issuing
collateral
stocks
certificates of deposit
25. How much money do businesses spend to market or sell their goods?
Tens of thousands of dollars
Millions of dollars
Billions of dollars
26. In order for a business to find out what consumers want, they conduct
interest polls
market research
customer satisfaction surveys
27. A market survey gathers information about
potential consumers of a product
potential producers of a product
potential labor force to create a product
28. After a product has been developed, what is the next step for a business?
sell the product
promote the product
create a marketing plan
29. If a resource is used to produce a good it can not be used to produce something else. This is called
opportunity cost
trade off
substitution effect
30. The value of the next best alternative that is given up to obtain a preferred item is called
opportunity cost
trade off
substitution effect