Econ Chapter 3: Free Enterprise

What is the ability of everyone to take part in the market by free choice?

• Legal Equality

• Free Contract

• Profit Motive

• Open Opportunity

What is another name for "a situation in which everyone has the same economic rights under the law"?

• Positive Externality

• Negative Externality

• Legal Equality

• Open Opportunity

What is infrastructure?

• Consists of all the goods and services that are necessary for the functioning of society

• Consists of all the government funding of goods and services for the poorer consumers

• Consists of all the taxes that are used to pay for public transfer payments

• Consists of all the goods and services that are extra within the functioning of society

What is the side effect of products and/or services that affect someone other than the producer or buyer?

• Profit

• Infrastructure

• Subsidy

• Externality

Why do producers enter a Free Enterprise Economy?

• To make products

• To seek profit

• To provide income to lower class consumers

• To create services for people

What is a person who benefits from economic transactions they are not a part of?

• Economist

• Entrepreneur

• Externality

• Free Rider

What is an example of a negative externality?

• Fewer Oil Rigs

• Industrial Pollution

• Less Toxic Waste

• Smaller buildings

Producers (business) are free to sell their products at what ever price they wish, and Consumers (customers) are free to refuse to buy. This is part of which Characteristic of Free Enterprise?

• Economic Freedom

• Voluntary Exchange

• Private Property

• Profit Motive

Workers can choose any job they want when they start their careers. What Characteristic of Free Enterprise is being described?

• Economic Freedom

• Voluntary Exchange

• Private Property

• Profit Motive

Individuals can own land, personal property, business property, and money. They can do what ever they'd like with said property. What Characteristic is being described?

• Economic Freedom

• Voluntary Exchange

• Private Property

• Profit Motive