EC-002
In business terms, what is profit?
A monetary reward
Every society must develop a system for deciding how it will use its resources so that it can
meet people’s needs.
Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. This is an example of
demand
Resources that enable businesses to operate are also known as
inputs
A characteristic of human wants is that they are
unlimited
If expenses are greater than income, there’s no
reward
Who answers the basic economic questions in a private enterprise economic system?
Businesses and individuals
Jeremy has $15,000 to spend on a new car. He found a car that cost $14,500, but he did not think the car was worth more than $12,000. The dealer told Jeremy that he has not been able to sell this model because other customers have expressed the same opinion as Jeremy. Does demand for this car exist?
No, because consumers are not willing to pay the price being asked for this car.
A salesclerk working part-time at a clothing store is an example of a(n)
human resource.
Which of the following is an example of an economic want:
Clothing
In business terms, income is the money
received.
One of the results of freedom in the marketplace is that
people can buy anything they can afford that can legally be sold.
The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is
supply.
Which of the following statements regarding economic resources is true:
Natural resources, human resources, and capital goods are often referred to as factors of production.
An example of a noneconomic want would be the desire for
a friend.
The amount of money paid for raw materials and products sold is called
cost of goods.
Alex owns a guitar, several books, and a telescope. Alex’s possessions are examples of
private property.
When the price of Bluetooth speakers increases, the quantity of Bluetooth speakers offered for sale will increase. This is an example of the law of
supply
When producers use the best combination of resources, consumers are more likely to get goods and services that
they want.
An economic good or service that is scarce is one that is
in limited supply.
The money spent to run a business is called
operating expense.
Which of the following is a benefit of the freedom to own private property:
It encourages people to save and invest.
Your business is selling more and more large-screen televisions each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions over the next few months?
The price will increase, and supply will increase.
Using a stream to supply water for crops is an example of using
natural resources.
If a good or service is scarce, consumers will usually be
willing to pay money to get it.