Chapter 3 Lesson 1 Review

Free Enterprise an economic system

• True

• False

The government is heavily involved in a free enterprise

• True

• False

Capitalism thrives on what?

• Free enterprise

• Supply and Demand

• Competition

Which is not a characteristic of free enterprise?

• Competition

• Utility

• Voluntary Exchange

• Private Property

Which characteristic of free enterprise do People have the right and privilege to control their possessions as they wish.

• Profit Motive

• Competiton

• Private Property

______ is the struggle that goes on between buyers and sellers to get the best products at the lowest prices.

• Competition

• Consumerism

• Markets

• Opportunity Cost

________ is the Free Enterprise characteristic where People can choose to have their own business or to work for someone else.

• Competition

• Economic Freedom

• Voluntary Exchange

• Profit Motive

_________ is the Free Enterprise characteristic where Both the buyer and seller are better after the transaction than before.

• Voluntary Exchange

• Private Property

• Profit Motive

• Economic Freedom

Which is not a benefit of the free enterprise system?

• Creation of wealth

• Variety of goods

• Promoting Progress

• Implementation of government production

Why is "rights and responsibilities" a disadvantage of Free Enterprise if it helps the consumer?

• Consumers waste time trying to be responsible

• Consumers want to buy products from them

• Costs money for the producer

• Producers enjoy being responsible