Understanding Market Economy Concepts

Front

What is the term used to describe the system where the prices of goods and services are determined by supply and demand?

Back

Market economy

Front

Which of the following best describes "consumer sovereignty"?

Back

Consumers decide what goods and services are produced.

Front

What is the main motivation for entrepreneurs in a market economy?

Back

To earn a profit

Front

Which term refers to the situation where the quantity of goods supplied is equal to the quantity of goods demanded?

Back

Market equilibrium

Front

What does "laissez-faire" mean in the context of a market economy?

Back

Minimal government interference in the economy

Front

Which of the following is a characteristic of capitalism?
Options:
Government ownership of all resources,
Private property rights,
No competition,
Fixed prices set by the government

Back

Private property rights

Front

What role does competition play in a market economy?

Back

It encourages innovation and better products.

Front

In a free market, who decides what goods and services should be produced?

Back

Consumers and producers

Front

What is the term for the right to own and control private property?

Back

Private property rights

Front

Which of the following best describes entrepreneurship? The ability to work for someone else, The act of starting and running a new business, The process of buying goods for personal use, The decision to save money instead of spending it

Back

The act of starting and running a new business