Civics Unit 9 Test Review

The economy in the U.S. can be categorized as a _______________________.

• free market economy

• command economy

• traditional economy

• mixed economy

Which of the following is considered a "risk-taker"?

• labor

• consumer

• government

• entrepreneur

How are prices of goods and services determined?

• It is based on the interaction of the factors of production.

• It is based on the interaction of supply and demand.

• It is based on the interaction of production and consumption.

• It is based on the entrepreneur and how they set the prices of their goods and services.

The following example describes which economic characteristic?

Nike creates a new glow-in-the-dark shoe but it did not make the profits they intended. Eventually, Nike decides to stop the production because consumers did not purchase the product.

• individual choice

• competition

• private property

• consumer sovereignty

Scarcity forces uses to make a __________. We have to make these because resources are limited.

• price

• supply

• labor

• choice

• demand

Which of US economic characteristic is described below?

"Markets can generally operate without very little government interference. The interaction of supply and demand determine the price of goods and services"

• competition

• profit motive

• private property

• free enterprise

Which of US economic characteristic is described below?

"As buyers make purchases, we ultimately decide what goods and services will be produced. There is very little government intervention in the economy and many of the decisions are made by private businesses"

• consumer sovereignty

• profit motive

• private property

• free enterprise

Which US economic characteristic is described below?

"As producers make own our personal property or the factors of production. This is done with very little to no government interference. The government makes rules on property rights "

• consumer sovereignty

• profit motive

• private property

• free enterprise

Which of the following is a proprietorship?

• A form of business organization with two or more owners who share the risks and the profits.

• A form of business organization with one owner who takes all the risks and all the profits.

• A form of business organization that is authorized by law to act as a legal entity regardless of the number of owners. Owners share the profits. Owner liability is limited to the amount of their investment.

Which of the following is a corporation?

• A form of business organization with two or more owners who share the risks and the profits.

• A form of business organization with one owner who takes all the risks and all the profits.

• A form of business organization that is authorized by law to act as a legal entity regardless of the number of owners.