SOL CE 12 - Characteristics of the U.S. Economy

Competition results in all of the following benefits to consumers EXCEPT?

• Lower priced goods and services.

• Better quality goods and services.

• More choices in goods and services.

• Lower income for employees.

The amount of money a business has remaining after it has paid all costs such as labor, rent, and utilities is known as its?

• price

• competition

• supply

• profit

Products such as fidget spinners, beanie babies, and hula hoops were extremely popular at one time and therefore were made in large number. However the demand for each has mostly disappeared so very few a made today. This is due to what principle?

• Proprietorship

• Consumer Sovereignty

• Due Process

• Opportunity Cost

The United States has many characteristics of a Free Market Economy, however the United States is actually what form of economy?

• Command Economy

• Traditional Economy

• Mixed Economy

The interaction of supply and demand determines what?

• The quality of goods and services.

• The taxes placed on goods and services.

• The price of goods and services.

• The choices we have in goods and services.

The Law of Demand states that...

• Individuals will demand more of a good or service when prices are low.

• Individuals will demand less choices in goods or services.

• Individuals will demand less of a good or service when prices are low.

• Individuals will demand more of a good or service when quality is low.

The Equilibrium Price is the ...

• The lowest that an item will sell for.

• The cost of the item to be made

• The price at which supply and demand meet.

• The most that the government allows to be charged for that item.

What type of business has one owner who takes all the risk and all the profit of operating a business?

• Partnership

• Proprietorship

• Corporation

• Conglomerate

What form of business is your risk and profit limited to your investment? Hint you can buy stock in it.

• Proprietorship

• Partnership

• Corporation

• Conglomerate

Who owns the resources that are used in production? They sell these resources in order to earn income which can be used to buy goods and services?

• Individuals/Households

• Businesses

• Government