Topic 2.5 and 2.6 Quiz

The driving force behind people going into business is

• profit margin
• profit motive
• opportunity cost
• taxes

The concept that people have the right and privilege to control their possessions as they wish.

• legal equality
• open opportunity
• private property
• profit incentive

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

The rivalry between sellers to get more customers by lowering costs & better goods/services

• voluntary exchange
• competition
• incentives
• legal equality

A period of macroeconomic expansion followed by a period of contraction. 

• boom/bust
• economic growth
• business cycle
• recession

A period of macroeconomic expansion followed by a period of contraction. 

• boom/bust
• economic growth
• business cycle
• recession

A shared good/service that government builds because it would be impractical for an individual 

• private good
• public good
• military good
• market failure

A _______________ is an exclusive right to a new product or invention for a number of years.

• copyright
• patent
• incentive
• legal equality

A _______________ is an exclusive right to publish or sell a piece of written material (ex. need permission to produce a movie based on a book).

• copyright
• patent
• invention
• incentive

A person who chooses to, and is free to, open a grocery store is participating in a

• command economy

• centrally-planned economy

• free enterprise economy

• traditional economy