Economics Review

Why is the United States characterized as mixed economy?

• It is based entirely on supply and demand.

• It is primarily a free market economy but there is some government involvement.

• It is completely controlled by the government.

• It is mostly controlled by the government with some consumer choice.

When buyers and sellers exchange goods and services, what exists?

• supply and demand

• government control

• a market

• competition

Individuals and businesses have the right to own real and personal property as well as the means of production without undue interference from the government.

• free enterprise

• private property

• profit motive

• consumer sovereignty

Rivalry between producers and/or between sellers of a good or service usually results in better quality goods and services at lower prices.

• free enterprise

• private property

• profit motive

• competition

Markets are generally allowed to operate without undue interference from the government.

• free enterprise

• private property

• profit motive

• comumer sovereignty

Profit consists of earning after all expenses have been paid.

• private property

• profit motive

• consumer sovereignty

• competition

Consumers determine through purchases what goods and services will be produced

• free enterprise

• profit motive

• consumer sovereignty

• competition

A person who takes a risk to produce and sell goods and services in search of profit is called a(n)

• producer

• supplier

• entrepeneur

• demand

The amount of money exchanged for goods and services is called

• amount

• price

• cost

• total

Things that motivate behavior are called

• incentives

• price

• cost

• supply