Ch 3 American Free Enterprise

The government can't take your property without just compensation.

• True

• False

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

The driving force behind people going into business is

• profit margin
• profit motive
• opportunity cost
• taxes

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

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

The concept that people may decide what and when they want to buy and sell goods & services

• voluntary exchange
• legal equality
• private property
• open opportunity

The rivalry between sellers to get more customers by lowering costs & better goods/services

• voluntary exchange
• competition
• incentives
• legal equality

A shared good/service that government builds because it would be impractical for an individual 

• private good
• public good
• military good
• market failure

This is the study of the behavior/decision making of entire economies, not individuals.

• microeconomics
• macroeconomics
• finite economics
• economic models

This is the study of the behavior/decision making of individuals & businesses. 

• microeconomics
• macroeconomics
• recession
• expansion

What is the best measure of the economic well-being of a country?

• net worth
• GDP
• open market value of goods
• the daily stock market performance