Market and Mixed Economy

Burger King and McDonalds keep their prices low because of

• Competition
• Property Rights
• Limited Role of Government
• Freedom of Enterprise

How would a free market economy be described?

• An economy in which decisions are made by the government.

• The international exchange of goods.

• An economy based on supply and demand with no government control

• An economy that is communist

The primary motivating factor in a market economy is..

• profit
• quality of goods
• competition

How many choices do you have in a market economy?

• none
• very few
• one
• many

What is the number of sellers in a monopoly?

• one
• few
• many
• none

What type of economic system allows government and private businesses to make economic decisions?

• Market
• Mixed
• Traditional
• command

A major advantage of a market economy

• It can change direction quickly
• a high degree of individual freedom
• efficient government control of production and distribution
• People are likely to be offered goods and services they cannot afford

Most common type of economy in the world today

• Mixed
• Command
• Market
• Traditional

Which is a correct statement about mixed economies today

• There are more mixed economies in the world than any other kind.
• Very few economies today can be accurately described as “mixed.”
• Mixed economies exist mostly in nations with communist governments.
• Most nations that once had a mixed economy have evolved into command economies.

The mixed economy has private and public sectors.

• True

• False