Economic Systems/Market Economy

This is the social & political commitment & freedom to start their own businesses & compete

• free enterprise system
• free response system
• free travel system
• freedom of choice

What is the most effective way for consumers to participate in the free enterprise system?

• through mail and phone surveys
• by protesting and boycotting
• by hiring lobbyists and interest groups
• by the purchases they make

The concept that people have the right and privilege to control their possessions as they wish.

• legal equality
• open opportunity
• private property
• profit incentive

Why does the government use its powers to make sure that businesses disclose so much information to the public (e.g. companies must list all ingredients in a product)?

• to make buyers more knowledgeable and safe
• to make it harder for businesses to make a profit
• to make it easier for consumers to save money
• to make it easy for businesses to have good information

Market economy in which people freely carry on economic affairs but are subject to some government regulation

• Mixed Economy
• Traditional Economy
• Voluntary Exchange
• Modified Free Enterprise

Which of these is a service?

• washing cars for $10 per car
• apples that cost $1
• your mom making you take out the trash as a chore
• saving for college

How consumers choose to spend their money causes business firms of all kinds to________

• have their goods made in foreign countries.
• produce only what the business wants to produce.
• produce certain goods and services and not others.
• produce as many kinds of goods and services as possible.

A common resource is 

• a resource that everyone has access to and that can be easily be overused or destroyed. Examples include the atmosphere and the oceans.
• a policy approach - often applied to environmental policy - that relies on rules and enforcement, rather than market incentives, to influence behavior.
• a direct payment of cash by the government to an individual.
• a policy that limits the amount of pollution a firm may legally emit each year but allows firms to trade with each other to obtain additional pollution permits.

If the price for fish rises in the supermarket, _____.

• a. the demand curve for fish will shift to the right
• b. the demand curve for fish will shift to the left
• c. the quantity of beef sold will rise
• d. the quantity of beef sold will fall

A consumer is... 

• monkey
• the economic factors affecting the price, demand, and availability of a commodity.
• somebody who takes away stuff
• a person who purchases goods and services for personal use.