Name Class Dat
: : e:
Ch 01 Economic Decisions and Systems
1. Things that are required in order tо live are known as wants.
a. True
b. False
ANSWER: False
RATIONALE: Needs are things required in order to live. Wants are things that add to the comfort and pleasure
of your life.
POINTS: 1
REFERENCES: Needs and Wants
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVE 1.1.1 - Compare and contrast needs and wants.
S:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/24/2022 2:33 PM
2. Goods and services are purchased by businesses as well as by individuals.
a. True
b. False
ANSWER: True
RATIONALE: Both businesses and consumers purchase goods and services.
POINTS: 1
REFERENCES: Goods and Services
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: 1.1.2 - Distinguish between goods and services.
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/26/2022 10:52 AM
3. Buildings, equipment, and supplies are examples of natural resources.
a. True
b. False
ANSWER: False
RATIONALE: Raw materials supplied by nature are natural resources, while capital resources include buildings,
equipment, and supplies.
POINTS: 1
REFERENCES: Economic Resources
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI 1.1.3 - Describe the types of economic resources.
VES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/24/2022 2:36 PM
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,Name Class Dat
: : e:
Ch 01 Economic Decisions and Systems
4. All economic resources have a limited supply.
a. True
b. False
ANSWER: True
RATIONALE: Economic resources are scarce, meaning they have a limited supply.
POINTS: 1
REFERENCES: Economic Resources
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: 1.1.3 - Describe the types of economic resources.
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/26/2022 10:51 AM
5. The basic economiс problem results from not having enough resources to satisfy every nеed.
a. True
b. False
ANSWER: True
RATIONALE: Individuals and businesses have unlimited wants and needs. However, the economic resources they
can use to meet their needs are limited. The gap between unlimited wants and needs and limited
economic resources is known as the basic economic problem.
POINTS: 1
REFERENCES: The Basic Economic Problem
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJE 1.2.1 - Describe the basic economic problem.
CTIVES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/24/2022 2:40 PM
6. The final step in the decision-making prоcess is to select the best choice from among the аlternatives.
a. True
b. False
ANSWER: False
RATIONALE: In the decision-making process, after choosing the best alternative, the next steps are to act on your
choice and then to review the decision.
POINTS: 1
REFERENCES: The Decision-Making Process
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJEC 1.2.2 - Explain the steps in the decision-making process.
TIVES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
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,Name Class Dat
: : e:
Ch 01 Economic Decisions and Systems
7. Although all nations differ in the type and amount of economic resources they have, they all have the same economic
needs.
a. True
b. False
ANSWER: False
RATIONALE: Nations differ in the types and amounts of resources they have as well as in what they determine to
be their important needs and wants.
POINTS: 1
REFERENCES: The Three Economic Questions
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJEC 1.3.1 - Identify the three economic questions.
TIVES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
8. Communism, as practiced in the former Soviet Union, refers to the private ownership of resources by individuals rather
than by thе government.
a. True
b. False
ANSWER: False
RATIONALE: Under a command system called communism, the Soviet Union’s resources were owned and
controlled by the government.
POINTS: 1
REFERENCES: Types of Economic Systems
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI 1.3.2 - Differentiate among the main types of economic systems.
VES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 9/28/2022 4:53 PM
9. A person who buys and uses goods and services is called a consumer.
a. True
b. False
ANSWER: True
RATIONALE: Individuals who buy and use goods and services are consumers. Businesses and governments
also are consumers.
POINTS: 1
REFERENCES: Supply and Demand in a Market Economy
QUESTION TYPE: True / False
HAS VARIABLES: False
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, Name Class Dat
: : e:
Ch 01 Economic Decisions and Systems
LEARNING OBJECTIV 1.4.1 - Describe supply and demand verbally and with graphs.
ES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
10. Generally, a lack of competition will result in lower prices for goods and services.
a. True
b. False
ANSWER: False
RATIONALE: When competition is limited, consumers cannot find good alternatives and prices may be high due
to a lack of competition.
POINTS: 1
REFERENCES: Determining Price
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI 1.4.2 - Discuss how supply and demand affect prices of products and services.
VES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
11. Which of the following is an economic need?
a. a new television
b. water
c. concert tickets
d. a loaded SUV
ANSWER: b
RATIONALE: Needs are things required in order to live and include food, water, clean air, clothing, and
shelter.
POINTS: 1
REFERENCES: Needs and Wants
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: 1.1.1 - Compare and contrast needs and wants.
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
12. Goods
a. are things you purchase only after your basic needs are met.
b. have no physical characteristics.
c. must be provided to you at the time you want to consume them.
d. are things you can see and touch.
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 4
: : e:
Ch 01 Economic Decisions and Systems
1. Things that are required in order tо live are known as wants.
a. True
b. False
ANSWER: False
RATIONALE: Needs are things required in order to live. Wants are things that add to the comfort and pleasure
of your life.
POINTS: 1
REFERENCES: Needs and Wants
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVE 1.1.1 - Compare and contrast needs and wants.
S:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/24/2022 2:33 PM
2. Goods and services are purchased by businesses as well as by individuals.
a. True
b. False
ANSWER: True
RATIONALE: Both businesses and consumers purchase goods and services.
POINTS: 1
REFERENCES: Goods and Services
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: 1.1.2 - Distinguish between goods and services.
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/26/2022 10:52 AM
3. Buildings, equipment, and supplies are examples of natural resources.
a. True
b. False
ANSWER: False
RATIONALE: Raw materials supplied by nature are natural resources, while capital resources include buildings,
equipment, and supplies.
POINTS: 1
REFERENCES: Economic Resources
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI 1.1.3 - Describe the types of economic resources.
VES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/24/2022 2:36 PM
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name Class Dat
: : e:
Ch 01 Economic Decisions and Systems
4. All economic resources have a limited supply.
a. True
b. False
ANSWER: True
RATIONALE: Economic resources are scarce, meaning they have a limited supply.
POINTS: 1
REFERENCES: Economic Resources
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: 1.1.3 - Describe the types of economic resources.
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/26/2022 10:51 AM
5. The basic economiс problem results from not having enough resources to satisfy every nеed.
a. True
b. False
ANSWER: True
RATIONALE: Individuals and businesses have unlimited wants and needs. However, the economic resources they
can use to meet their needs are limited. The gap between unlimited wants and needs and limited
economic resources is known as the basic economic problem.
POINTS: 1
REFERENCES: The Basic Economic Problem
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJE 1.2.1 - Describe the basic economic problem.
CTIVES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 5/24/2022 2:40 PM
6. The final step in the decision-making prоcess is to select the best choice from among the аlternatives.
a. True
b. False
ANSWER: False
RATIONALE: In the decision-making process, after choosing the best alternative, the next steps are to act on your
choice and then to review the decision.
POINTS: 1
REFERENCES: The Decision-Making Process
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJEC 1.2.2 - Explain the steps in the decision-making process.
TIVES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name Class Dat
: : e:
Ch 01 Economic Decisions and Systems
7. Although all nations differ in the type and amount of economic resources they have, they all have the same economic
needs.
a. True
b. False
ANSWER: False
RATIONALE: Nations differ in the types and amounts of resources they have as well as in what they determine to
be their important needs and wants.
POINTS: 1
REFERENCES: The Three Economic Questions
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJEC 1.3.1 - Identify the three economic questions.
TIVES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
8. Communism, as practiced in the former Soviet Union, refers to the private ownership of resources by individuals rather
than by thе government.
a. True
b. False
ANSWER: False
RATIONALE: Under a command system called communism, the Soviet Union’s resources were owned and
controlled by the government.
POINTS: 1
REFERENCES: Types of Economic Systems
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI 1.3.2 - Differentiate among the main types of economic systems.
VES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 9/28/2022 4:53 PM
9. A person who buys and uses goods and services is called a consumer.
a. True
b. False
ANSWER: True
RATIONALE: Individuals who buy and use goods and services are consumers. Businesses and governments
also are consumers.
POINTS: 1
REFERENCES: Supply and Demand in a Market Economy
QUESTION TYPE: True / False
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 3
, Name Class Dat
: : e:
Ch 01 Economic Decisions and Systems
LEARNING OBJECTIV 1.4.1 - Describe supply and demand verbally and with graphs.
ES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
10. Generally, a lack of competition will result in lower prices for goods and services.
a. True
b. False
ANSWER: False
RATIONALE: When competition is limited, consumers cannot find good alternatives and prices may be high due
to a lack of competition.
POINTS: 1
REFERENCES: Determining Price
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI 1.4.2 - Discuss how supply and demand affect prices of products and services.
VES:
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
11. Which of the following is an economic need?
a. a new television
b. water
c. concert tickets
d. a loaded SUV
ANSWER: b
RATIONALE: Needs are things required in order to live and include food, water, clean air, clothing, and
shelter.
POINTS: 1
REFERENCES: Needs and Wants
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: 1.1.1 - Compare and contrast needs and wants.
DATE CREATED: 5/24/2022 10:42 AM
DATE MODIFIED: 7/1/2022 4:48 PM
12. Goods
a. are things you purchase only after your basic needs are met.
b. have no physical characteristics.
c. must be provided to you at the time you want to consume them.
d. are things you can see and touch.
ANSWER: d
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