Sectors of the Economy

Multiple Choice

Which of the following best describes a market economy?

• The government controls all businesses and makes all decisions.

• Individuals control businesses and customers freely choose what to buy.

• Businesses are owned by the government and customers follow government orders.

• Only large corporations can participate in the market.

Multiple Choice

What determines the price in a market according to the concept of supply and demand?

• The connection of supply and demand

• The number of buyers only

• The amount of competition only

• The quality of goods only

Multiple Select

Which of the following statements are true about how supply and demand influence price?

• If demand is greater than supply, prices increase.

• If supply is greater than demand, prices decrease.

• Price is determined only by supply.

• Supply and demand interact to determine price.

Multiple Choice

When multiple producers compete to sell similar goods in the same market, what is a likely outcome for consumers?

• Consumers benefit from lower prices

• Consumers have to pay higher prices

• There is less variety for consumers

• Producers stop selling their goods

Open Ended

What does it mean to sell your labor to someone?

Multiple Choice

Which of the following are buyers and sellers of labor services?

• Employers are buyers, employees are sellers

• Employees are buyers, employers are sellers

• Employers are both buyers and sellers

• Employees are neither buyers nor sellers

Multiple Choice

Which of the following actions best demonstrates entrepreneurial spirit?

• Inventing a new social media platform

• Following instructions without question

• Avoiding any kind of risk

• Waiting for others to take the lead

Multiple Select

Select all the characteristics that make a person an effective entrepreneur.

• Visionary

• Determination

• Risk-taker

• Laziness

Multiple Choice

Which of the following is a challenge faced by entrepreneurs?

• Having a regular salary

• Competing with other producers

• Avoiding all risks

• Guaranteed success

Multiple Select

Which of the following are benefits of being an entrepreneur?

• Being your own boss

• Enjoyment and excitement

• Flexibility and freedom

• Tough competition

Open Ended

How do you think the ability for customers to freely choose what they want to buy affects businesses in a market economy?

Multiple Choice

What is one key feature of a market economy as described in the lesson?

• The government controls all businesses

• Individuals control businesses

• Businesses are owned by the government

• Customers must buy what the government tells them