Free Market Economy Quiz

Who most believed in the free market economic system?

• John Maynard Keynes
• Adam Smith
• Karl Marx
• Milton Friedman

Which is NOT a freedom of a free market economy?

• no taxes on goods
• freedom to produce and sell anything
• freedom of prices on goods (to an extent)
• little government involvement

Which is NOT a role of the government?

• the government provides public goods
• the government prevents any unfair advantages of businesses
• all economic activity is controlled by the government
• the government enforces contracts

What incentives does the free market economy offer?

• cost reduction of automobiles
• economic growth
• interest-free loans
• free money to start an enterprise

How does a free market economy view property rights?

• there are many limitations to owning private property
• no citizen has the right to own private property
• all property is public
• private property is respected and kept secure

How would a free market economy be described?

• an economy in which decisions are made by the government rather than by the interaction between consumers and businesses
• the international exchange of goods and services
• an economy based on supply and demand with little or no government control
• an economy that combines characteristics of capitalism and socialism