Econ - Chapter 3.2 Quiz

The phrase "the customer is always right" is most often associated with what term?

• entrepreneurship 
• mixed economy 
• consumer sovereignty 
• regulatory government 

How does the government operate in a free enterprise economy

• It takes a "hands-off" approach to business. 
• It tells businesses what to produce and what to sell.
• It interferes with business only when it is profitable. 
• It establishes laws and rules to maintain competition. 

In its role as protector of the American free enterprise system, one of the issues the government must deal with is _______ . 

• environmental hazards 
• helping businesses get started 
• weeding out corruption 
• the store selling the product

Who ultimately determines the success of a product? 

• the government 
• the consumer 
•  the business producing the product
• the store selling the product

Consumers can influence the production and sale of goods by _______ . 

• "voting" with their dollars 
• reducing their spending habits 
• saving their money 
• paying off their debt

Risk-taking individual in search of profits 

• regulator
• entrepreneur
• mixed economy
• catalyst

Ruler of the market in determining goods and services produced 

• Regulator
• Entreprenuer
• Consumer
• Catalyst

Economic system with combination of command, traditional, and market economies 

• Traditional
• Mixed economy
• Command
• Market

Role of national government in preserving marketplace competition

• regulator
• catalyst
• consumer
• entreprenuer

Something that stimulates activity among forces or people 

• regulator
• entrepreneur
• catalyst
• protector