United States Economy CE.12a

Select the type of economy the United States has-

• Command

• Traditional

• Mixed

• Free Market

Consumers have the ability to determine what goods and services will be produced through their purchases-

• Consumer Sovereignty

• Central planning

• Free Enterprise

• Private Property

Characteristic of the US economy that consists of earnings after all expenses have been paid-

• Free Enterprise

• Private Property

• Competition

• Profit motive

Government involvement is limited in the US economy; most decisions regarding goods and services are made in the private sector.

• True

• False

Which factor is the cause to the effect?

• Private Property

• Free Enterprise

• Competition

• Profit Motive

Select the 2 characteristics of free enterprise-

• Consumers determine what will be produced.

• Prices determined by supply and demand

• Government provides a structure

• Markets operate without interference from the government

To figure out what his profit is, Reggie must______. His profit is_______.

• Add his earnings to his expenses; $150

• Divide his expenses by his earnings; $2

• Subtract his expenses from his earnings; $50

• Multiply his earnings times his expenses; $5,000

A market exists whenever buyers and sellers exchange ___________ and ________________.

Choose 2 answers.

• Profit

• Services

• Revenue

• Resources

• Goods