Quiz - Economics 2-3

the struggle among sellers to attract consumers while lowering costs

• capitalism

• profit motive

• competition

• voluntary exchange

• mixed economy

economy in which free economic activity is subject to some government intervention and regulation

• capitalism

• profit motive

• competition

• voluntary exchange

• mixed economy

the driving force that encourages people and organizations to improve their material well-being

• capitalism

• profit motive

• competition

• voluntary exchange

• mixed economy

a characteristic of capitalism in which buyers and sellers freely and willingly engage in market transactions

• capitalism

• profit motive

• competition

• voluntary exchange

• mixed economy

economic system in which private citizens own the factors of production

• capitalism

• profit motive

• competition

• voluntary exchange

• mixed economy

concept that the consumer is the ruler of the market

• consumer sovereignty

• profit motive

• competition

• voluntary exchange

• mixed economy

All of the following are characteristics of capitalism EXCEPT

• private property rights.

• economic freedom.

• profit motive.

• government control.

What is another term for a modified private enterprise economy?

• mixed economy

• pure capitalism

• command economy

• free enterprise

Why are entrepreneurs important in a free enterprise economy?

• Entrepreneurs do not pay taxes.

• Entrepreneurs help define the seven economic and social goals.

• Entrepreneurs pay high wages to their employees.

• Entrepreneurs start new businesses.

How do consumers exercise their power in the American economy?

• by deciding what to purchase

• by working for businesses

• by becoming entrepreneurs

• by saving their money