CE. 12 Framework

Government intervenes in a market economy when _________________. 

• the perceived costs of a government policy outweigh the benefits

• the perceived benefits of a government policy outweigh the anticipated costs

• it wants to

• daily

A ____________exists whenever buyers and sellers exchange goods and services.

• profit motive

• competition

• free enterprise

• market

Free enterprise: Markets are generally allowed to operate ___________.

• with undue interference from the government

• without undue interference from the government

• with government help

Individuals have the opportunity to ___________ and ___________. 

• create competition

• create a business

• earn profits

• earn debt

• earn customers

The United States economy has characteristics of a _____________economy.

• command

• traditional

• free market

Prices are determined by ____________ as buyers and sellers interact in the marketplace.

• competition

• the government

• profit motive

• supply and demand

___________ consists of earnings after all expenses have been paid.

• Private sector

• Bills

• Profit

• Consumer sovereignty

The U.S. economy has some aspects of command and traditional economies it is characterized as a _____________ economy.

• traditional

• command

• mixed

• free market

Rivalry between producers and/or between sellers of a good or service usually results in _________ and __________. 

• better quality goods

• lower quality goods

• services at higher prices

• services at lower prices

Consumers determine through purchases what goods and services will be produced. 

• Free Enterprise

• Competition

• Profit motive

• Consumer sovereignty