Free Enterprise, Supply and Demand, and Price

One of the characteristics of a capitalist free enterprise economy is _______ .

• voluntary exchange

• consumerism

• the minimum wage

• central planning

The struggle among sellers to attract consumers is known as

• consumer sovereignty

• voluntary exchange

• profit motive

• competition

Which of the following is a market economy in which people freely carry on economic affairs but are subject to some government regulation?

• traditional economy

• modified free enterprise economy

• socialist economy

• command economy

_______ protect consumers against harm from products on the market.

• Franchises

• Private property rights

• Government regulations

• Profit motives

Which of the following is largely responsible for the growth of a free enterprise system?

• government

• Gross Domestic Product

• market efficiency

• profit motive

Consumers in a free enterprise economy ultimately determine _______ to produce.

• when

• what

• how

• where

Markets in the free enterprise system are seldom regulated by _______.

• businesses

• consumers

• the government

• entrepreneurs

What are the characteristics of demand?

• the desire and ability to buy a product

• the ability and willingness to buy a product

• the willingness and desire to buy a product

• the desire, ability, and willingness to buy a product

Rule stating that more will be demanded at lower prices and less at higher prices

• Law of Supply

• Law of Demand

• substitution effect

• income effect

Changes in quantity demanded and changes in price have a(n) _________ relationship.

• indirect

• direct

• inverse

• positive