POBF Unit 5

A major characteristic of a market economy is which type of ownership of property?

• monopolistic

• limited

• government

• private

For a business, income remaining after payment of expenses is:

• loss.
• capital.
• profit.
• debt.

In business terms, what is profit?

• a risky venture
• a good investment
• a holiday bonus
• a monetary reward

What is a business's net profit if it has $762,750 in income, $291,400 inoperating expenses, and $238,930 in cost of goods?

• $368,730
• $232,420
• $471,350
• $523,820

In a private enterprise economic system, the interaction of supply anddemand primarily determines:

• government regulation.
• economic choices.
• the extent of pollution.
• product prices.

Countries whose governments provide citizens with free medical care,education, and other benefits often are referred to as which type of state?

• military

• capitalist

• consumer

• welfare

Which is a problem associated with communist command economies?

• There is no competition.
• There are high taxes.
• Supply and demand control what will be produced.
• Individuals run the risk of losing their businesses.

Which group of words best describes wants?

• limited, changing, and compensating
• unlimited, changing, and competing
• limited, unchanging, and competing
• unlimited, unchanging, and compensating

A type of economic system characterized by limited government restriction.

• Free Market System(also known as Private Enterprise System)

• Communist Command Economy

• Socialist Command Economy

• Traditional Economy

An economic system characterized by an even distribution of wealth.

• Socialist Command Economy

• Free Market (also known as Private Enterprise Economy)

• Communist Command Economy

• Traditional Economy