Free Enterprise

Things that people make or grow and then sell are called—

• services

• producers

• consumers

• goods

A producer is a person who makes a product or provides a

service.

• True

• False

A consumer is a person who spends money to buy things he or she needs or wants.

• True

• False

An economy in which people and private businesses, not the government, decide what goods to make and buy is called a—

• consumers’ economy

• goods and services system

• producers’ economy

• free enterprise system

What does it mean when something is in high demand?

• A few people want it.

• Many people want it.

• There is a lot of that product.

• There is little of that product.

What does it mean when something is in low supply?

• There is a small amount of it.

• A few people want it.

• There is a large amount of it.

• Everybody wants it.