Production of Goods and Services_Review Quiz

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

The concept that people may decide what and when they want to buy and sell goods & services

• voluntary exchange

• legal equality

• private property

• open opportunity

This is another name for capitalism

• Free Contract

• Free Enterprise

• Infrastructure

• Legal Equality

How do businesses respond when they face a loss in a free enterprise economy?

• They ignore the loss and continue operations

• They make changes to the product, customer values, and price

• They discontinue operations.

• They increase prices to make up for the loss.

What is the primary motivation for entrepreneurs to start a business?

• To become billionaires

• To fill a need or satisfy a want in the community

• To gain fame

In the U.S. economy, over half of all businesses are (a)   .

How do entrepreneurs such as Bill Gates and Steve Jobs impact the market?

• They only benefit themselves

• They change the way we work, play, communicate, and learn

• They only impact a small number of people

Which of the following best describes the role of consumers in the economy?

• They are responsible for directing the effort and resources that go into making goods and services.

• They have no impact on the economy.

• They only focus on meeting basic needs.

Which of the following best describes the relationship between consumption and saving in a household?

• They are unrelated

• They are directly proportional

• They are inversely proportional

Which of the following best describes the role of government in a free enterprise economy?

• Government heavily regulates businesses

• Government plays a limited role

• Government owns and operates all businesses