EconQuiz1C3P2

When an economy is capitalist and has free markets, it can be said that the economy is based on

• free enterprise
• free capitalism
• socialism
• command economy

The ____________ motive is what drives people and organizations to improve their material well-being.

• recession
• profit
• capital
• advantage

_______________________ is the right that allow people to own and control their possessions as they see fit, as long as it does not interfere with the rights of others.

• personal choice
• private choice
• private property
• free enterprise

The three synonymous terms to describe the U.S. economic system are free enterprise, capitalism, and ___________.

• limited role of government
• free market
• competition
• economic freedom

The dollar value of all final goods, services, and structures produced in a country in a year is known as

• Gross National Product
• franchise
• profit motive
• Gross Domestic Product

The struggle among sellers to attract consumers by offering the best products at the lowest prices is known as

• voluntary exchange
• profit motive
• property rights
• competition

Private property gives people the incentive to work, save, and ___________.

• buy
• sell
• invest
• profit

What gives people and businesses the opportunity to make their own decisions?

• profit motive
• economic freedom
• command economy
• free enterprise

This risk-taking individual is in search of profits

• regulator
• entrepreneur
• catalyst
• consumer

This is the ruler of the market in determining goods and services produced

• regulator
• entrepreneur
• catalyst
• consumer