ECON: Market Economy Quiz

Who determines a country's economic decisions such as the cost of goods?

• The government
• The president
• People and businesses

• The military

Which of the following is NOT a characteristic of a free-market economy?

• Unlimited government control

• Freedom of choice

• Competition

• Private property

Which of the following is a DISADVANTAGE of a free-market economy?

• Competition

• Promotes entreprenuership

• Freedom of choice

• Monopolies

Which of the following is an ADVANTAGE of a free-market economy?

• • Inferior goods and services

• Efficient distribution of resources

• Limited consumer choice

• Unequal distribution of wealth

Which of the following is a country with a market economy?

• Singapore

• Japan

• United States

• All of the above

TRUE or FALSE? The cost of a patient's treatment in a hospital is an economic decision

• True

• False

TRUE or FALSE? A producer's main goal is to make products sustainably

• True

• False

In a market economy, production is controlled by ______ and ______.

(type your answer below)

(a)  

The way resources are used is determined by (a)   .

Farmer Joe has grown a limited amount of corn during a season where corn is high in demand. What will most likely happen to the cost of Farmer Joe's corn?