Question

part 1: multiple choice
instructions
choose the answer that best fits each statement below.

1. which of the following is an economic want?

a. food
b. shelter
c. smartphone
d. clothing

1. people who purchase goods and services are called:

a. customers
b. economists
c. employees
d. business people

1. an organized way in which a state or nation distributes its resources and provides goods and services to the community is called:

a. standard of living
b. investment
c. economics
d. economic system

1. labor is:

a. raw materials found in nature
b. equipment a business uses
c. any service a person does for a company
d. something we desire but could ultimately live without

1. which is an example of an operational business activity?

a. repaying debt
b. purchasing stock
c. administrative duties
d. providing loans to customers

Explanation:

1. Economic wants are non-essential desired items; food, shelter, clothing are basic needs, while a smartphone is a want.
2. The term for people who buy goods/services is customers.
3. A system for distributing resources and providing goods/services is an economic system.
4. Labor refers to the services people provide for a company.
5. Administrative duties are core day-to-day operational business activities; the others are financial/non-operational.

Answer:

1. c. Smartphone
2. a. Customers
3. d. Economic system
4. c. Any service a person does for a company
5. c. Administrative duties