POB FINAL EXAM REVIEW QUESTIONS AND ANSWERS
Need - CORRECT ANSWER✅✅✅Things that are necessary for survival
Wants - CORRECT ANSWER✅✅✅Things not necessary for survival but which add comfort and
pleasure to our lives
Goods - CORRECT ANSWER✅✅✅Things you can see and touch
Services - CORRECT ANSWER✅✅✅Tasks that people or machines perform
Natural resources - CORRECT ANSWER✅✅✅Raw materials produced by nature
Human resources - CORRECT ANSWER✅✅✅The people who contribute physical and mental energy
to the production process
Capital resources - CORRECT ANSWER✅✅✅Are the tools, equipment, and buildings that are used to
produce goods and services
Entrepreneurial resources - CORRECT ANSWER✅✅✅Are the combining of natural, human, and
capital resources to produce goods and services. The basic economic problem exists due to limited
resources for satisfying unlimited needs and wants
Scarcity - CORRECT ANSWER✅✅✅Is not having enough resources to satisfy the unlimited needs and
wants
Traditionalism - CORRECT ANSWER✅✅✅An economy in which people do things the way they have
always been done
Communism - CORRECT ANSWER✅✅✅An economy in which the gov't makes ALL decisions
, Socialism - CORRECT ANSWER✅✅✅An economic system in which the gov't owns major industries,
but allows for private ownership of other business
Capitalism - CORRECT ANSWER✅✅✅Allows the freedom of consumption and production of goods
and services
Economic system - CORRECT ANSWER✅✅✅Where basic economic decisions are based on the action
of individual people and business participating in many different markets
Private Property - CORRECT ANSWER✅✅✅Can own, use, or dispose of things of value
Freedom of choice - CORRECT ANSWER✅✅✅Can make decisions independently and must accept
consequence of those decisions.
Profit - CORRECT ANSWER✅✅✅Money left from sales after all of the costs of operation a business
have been paid.
Competition - CORRECT ANSWER✅✅✅The rivalry among business to sell their goods and services
Consumers - CORRECT ANSWER✅✅✅To decide what to buy, where to buy, from whom to buy and
what price we are willing to pay.
Producers - CORRECT ANSWER✅✅✅Determine what products and services will be available, what
needs and wants they will satisfy, and the prices they want to receive.
Demands - CORRECT ANSWER✅✅✅Is the quantity of goods or services that consumers are willing
and able to buy the market economy is based on the principles of supply and demand
Supply - CORRECT ANSWER✅✅✅Refers to the quantity of goods or service that businesses are
willing and able to provide
Need - CORRECT ANSWER✅✅✅Things that are necessary for survival
Wants - CORRECT ANSWER✅✅✅Things not necessary for survival but which add comfort and
pleasure to our lives
Goods - CORRECT ANSWER✅✅✅Things you can see and touch
Services - CORRECT ANSWER✅✅✅Tasks that people or machines perform
Natural resources - CORRECT ANSWER✅✅✅Raw materials produced by nature
Human resources - CORRECT ANSWER✅✅✅The people who contribute physical and mental energy
to the production process
Capital resources - CORRECT ANSWER✅✅✅Are the tools, equipment, and buildings that are used to
produce goods and services
Entrepreneurial resources - CORRECT ANSWER✅✅✅Are the combining of natural, human, and
capital resources to produce goods and services. The basic economic problem exists due to limited
resources for satisfying unlimited needs and wants
Scarcity - CORRECT ANSWER✅✅✅Is not having enough resources to satisfy the unlimited needs and
wants
Traditionalism - CORRECT ANSWER✅✅✅An economy in which people do things the way they have
always been done
Communism - CORRECT ANSWER✅✅✅An economy in which the gov't makes ALL decisions
, Socialism - CORRECT ANSWER✅✅✅An economic system in which the gov't owns major industries,
but allows for private ownership of other business
Capitalism - CORRECT ANSWER✅✅✅Allows the freedom of consumption and production of goods
and services
Economic system - CORRECT ANSWER✅✅✅Where basic economic decisions are based on the action
of individual people and business participating in many different markets
Private Property - CORRECT ANSWER✅✅✅Can own, use, or dispose of things of value
Freedom of choice - CORRECT ANSWER✅✅✅Can make decisions independently and must accept
consequence of those decisions.
Profit - CORRECT ANSWER✅✅✅Money left from sales after all of the costs of operation a business
have been paid.
Competition - CORRECT ANSWER✅✅✅The rivalry among business to sell their goods and services
Consumers - CORRECT ANSWER✅✅✅To decide what to buy, where to buy, from whom to buy and
what price we are willing to pay.
Producers - CORRECT ANSWER✅✅✅Determine what products and services will be available, what
needs and wants they will satisfy, and the prices they want to receive.
Demands - CORRECT ANSWER✅✅✅Is the quantity of goods or services that consumers are willing
and able to buy the market economy is based on the principles of supply and demand
Supply - CORRECT ANSWER✅✅✅Refers to the quantity of goods or service that businesses are
willing and able to provide
