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FHCE 3100: Test 1 Questions with
Detailed Verified Answers
Question:Economics
Ans: - the study or science of production, distribution, and consumption
-the study of how society manages its scarce resources
Question: Society and Scarce Resources
Ans: -The management of society's resources if important because resources
are scarce
-Scarcity implies choice and choice implies cost
Question: Scarcity
Ans: -society has limited resources and therefore cannot produce all the
goods and services people wish to have
-Not enough resources are available to satisfy one's needs and wants and
choices have to be made about their use
Question: Consumers
, Page | 2
Ans: Individuals and groups who obtain, use, maintain, and dispose of goods
and services to fulfill needs and increase satisfaction
Question: Goods
Ans: tangible objects
Question: Services
Ans: intangible actions of work done
Question: Satisfaction is also known as...
Ans: utility
Question: Adam Smith (1776)
, Page | 3
Ans: -Author of "An Inquiry into the Nature and Course of the Wealth of
Nations"
-"consumers act in their own self-interests and markets work with the invisible
hand"
-Founder of modern economics
-Felt consumers should be given freedom and authority to run their own
economic affairs
-The US's founding fathers liked the idea that wealth should be based on
goods and services produced and consumed by consumers
Question: Capitalism
Ans: -a social system based on the recognition of individual rights
-The state is separated from economics
-Being able to freely choose among a vast array of commodities gives people a
sense of freedom
Question: Consumerism
Ans: The belief that goods given meaning to individuals and their roles in
society
Question: Buying goods and services is an act of trust?
, Page | 4
Ans: TRUE
-Because we assume our purchases will increase our satisfaction
-However, consumption may not always bring satisfaction
Question: Examples of Unsatisfactory Consumption
Ans: -Unsatisfactory products
-Injurious consumption (negative long-run)
-Consumer Fraud
Question: Caveat Emptor
Ans: "May the buyer beware"
Question: Needs
Ans: -the barest minimum physical necessities that allow you to survive
Question: Maslow's Hierarchy of Needs
FHCE 3100: Test 1 Questions with
Detailed Verified Answers
Question:Economics
Ans: - the study or science of production, distribution, and consumption
-the study of how society manages its scarce resources
Question: Society and Scarce Resources
Ans: -The management of society's resources if important because resources
are scarce
-Scarcity implies choice and choice implies cost
Question: Scarcity
Ans: -society has limited resources and therefore cannot produce all the
goods and services people wish to have
-Not enough resources are available to satisfy one's needs and wants and
choices have to be made about their use
Question: Consumers
, Page | 2
Ans: Individuals and groups who obtain, use, maintain, and dispose of goods
and services to fulfill needs and increase satisfaction
Question: Goods
Ans: tangible objects
Question: Services
Ans: intangible actions of work done
Question: Satisfaction is also known as...
Ans: utility
Question: Adam Smith (1776)
, Page | 3
Ans: -Author of "An Inquiry into the Nature and Course of the Wealth of
Nations"
-"consumers act in their own self-interests and markets work with the invisible
hand"
-Founder of modern economics
-Felt consumers should be given freedom and authority to run their own
economic affairs
-The US's founding fathers liked the idea that wealth should be based on
goods and services produced and consumed by consumers
Question: Capitalism
Ans: -a social system based on the recognition of individual rights
-The state is separated from economics
-Being able to freely choose among a vast array of commodities gives people a
sense of freedom
Question: Consumerism
Ans: The belief that goods given meaning to individuals and their roles in
society
Question: Buying goods and services is an act of trust?
, Page | 4
Ans: TRUE
-Because we assume our purchases will increase our satisfaction
-However, consumption may not always bring satisfaction
Question: Examples of Unsatisfactory Consumption
Ans: -Unsatisfactory products
-Injurious consumption (negative long-run)
-Consumer Fraud
Question: Caveat Emptor
Ans: "May the buyer beware"
Question: Needs
Ans: -the barest minimum physical necessities that allow you to survive
Question: Maslow's Hierarchy of Needs
