Unit 1

One of the benefits of the U.S. free enterprise system is what?

• Lack of union participation by workers

• Equal distribution of goods and services

• Amount of choice for consumers

• Guaranteed return on investments

Which of the following is most characteristic of the U.S. free enterprise system?

• Public ownership of the factors of production

• Markets that respond to consumer demand.

• Government price controls

• Nationalization of energy companies

What is one result of competition in the U.S. free enterprise system?

• Improved safety conditions

• Steady wages and income

• Fewer consumer choices

• Lower prices for products

What economic philosopher wrote the Road to Serfdom?

• Friedman

• Hayek

• Smith

• Keynes

Which of the following is a basic characteristic of all economic systems?

• Price controls

• Wage incentives

• Small business owners

• Distribution of goods and services

Someone wanting to buy a washing machine must consider the other purchases that could be made with the money spent on the washing machine. Which economic factor has this individual considered before making this purchase?

• Scarcity

• Opportunity cost

• Supply and demand

• Production-possibililtes

Which resource would be considered the factor of production of land?

• Factory

• Tractor

• Oil

• Money

Who prospers in economies where there is freedom to start businesses and resources can be bought freely?

• Landlords

• Laborers

• Capital Investors

• Entrepreneurs

In a free market society, who determines how much to produce?

• Census data

• Profit projections

• Government quotes

• Consumer demand

The basic idea of choice presents which of the problems in economics?

• People get to decide what they want.

• Choice is a way of life

• Businesses can sell what they want.

• Decisions produce costs.