Econ Final Review1

When producers use the free enterprise system, the benefit to consumers is

• wider variety of goods

• greater profits for the producers

• consolidation within various industries

If the band tries to raise enough money for new uniforms, an out of state competition and an end of the year party but they dont raise enough, what basic economic issue will the band face?

• choice based on limited resources

• exchange of goods and services

• production and consumption

The value of the dollar depends on how much

• you spend

• you can buy with it

• you earn

Which type of economic system is based on private ownership of property and a profit motive?

• traditional

• command

• capitalism

Which statement below identifies a characteristic of the free-enterprise economic system?

• investments and profits are controlled by individuals

• individuals and the government work together to make profits

• the government makes most economic decisions

The key advantage to gaining access to credit is that it can help people

• buy a good or service now and pay for it later

• reduce risk when investing in stocks

• increase their net worth

Using a debit card to make a purchase is most similar to using a

• check

• credit card

• loan

What is the main economic system of the United States?

• capitalism

• communism

• socialism

Which of the following is a charactersitic of a free market economy?

• customers do not pay sales tax

• the price of goods is determined by supply and demand

• many goods are produced by the government and given out for free

Which of the following is true of a capitalistic economic system?

• businesses compete against each other for customers

• the government owns the means of production

• individuals are not allowed to invest in businesses