Econ Quiz #2 - 23/24

Which of the following is NOT a feature of a free market economy?

• voluntary exchange

• private property rights

• central planning

• profit motive

The monetary value of all final goods, services, and structures produced within a country’s national borders during a one-year period is

• Profit Motive

• Money

• GDP:

  Gross

  Domestic

  Product. 

• GNP:

  Gross

  National

  Product

A rise in the overall price level—leading workers to require more money for essentials like food, clothing, and shelter.

• Deflation demand

• Deflation

• Change in demand

• Inflation

Another synonymous term for capitalism is a free market and ....

• Free enterprise

• Free capitalism

• Communist

• Socialism

__________________ play an important role in the American free enterprise economy because their spending helps determine what is, and is not, produced.

• Government agencies

• Stocks

• Consumers

• Businesses

“Demand” for a product means more than simply the desire to own it. Instead, demand includes desire and also the ______________ and _______________________.

• Willingness and profits

• Will Smith and the ability to buy the product

• Willingness and ability to buy the product

• Desire and profits

• None of the above

What is the term for the ability of individuals to make their own economic decisions without interference from the government?

• Government Intervention

• Economic Freedom

• Voluntary Exchange

• Profit Motive

• Public Property Rights

Which product most likely has a demand that is inelastic?

• Gasoline

• Tacos

• Coke

• Iphones

• All of the above

Which product most likely has a demand that is elastic?

• Insulin

• Gasoline

• Pizza

• None of the above

When the price of something decreases, the quantity demanded ____

• increases

• goes to x

• remains unchanged

• decreases