In a market economy, who answers the 3 economic questions?

• Buyers and sellers

• The government

• Traditions and customs

• Your mom

A(n) ____ is a method a society uses to answer the 3 economic questions.

• Economic System

• Market Structure

• Type of Government

• Planning Board

___ basically invented modern economics with his book The Wealth of Nations.

• Adam Smith

• Karl Marx

• Frederich Engels

• Gouverneur Morris

The idea that buyers and sellers willingly enter into economic transactions.

• Voluntary Exchange

• Rational Choice

• Consumer Sovereignty

• Free Enterprise

The idea that individuals can be trusted to make decisions that best benefit themselves.

• Voluntary Exchange

• Rational Choice

• Consumer Sovereignty

• Free Enterprise

The idea that ultimately, decisions in a market economy will be based on what individuals buy.

• Voluntary Exchange

• Rational Choice

• Consumer Sovereignty

• Free Enterprise

An economic model in which businesses operate free from government control.

• Voluntary Exchange

• Rational Choice

• Consumer Sovereignty

• Free Enterprise

What type of Economic System does the U.S. mostly have?

• Market economy

• Command economy

• Traditional Economy

• Planned Economy

What type of Economic System does the U.S. actually have?

• Mixed economy

• Command economy

• Traditional Economy

• Planned Economy

What would the government's role in a laissez faire economy be?

• Pretty much nothing

• Setting prices

• Owning the factors of production

• Determining minimum wage