Module 3

In a market economy, who determines what to produce, how to produce, and for whom to produce?

• The government

• Consumers and businesses

• Non-profit organizations

• Corporations

What is the role of a consumer in a market economy?

• To regulate industries

• To create policies

• To determine what products should be produced

• To supervise actions of companies

Which type of business has limited regulations and allows the sole proprietor to have full control?

• Partnerships

• Corporations

• Franchises

• Sole Proprietorships

What is the advantage of a partnership in a market economy?

• Ease of start-up

• Limited personal liability

• Long life

• Established working model

What is the disadvantage of a corporation in a market economy?

• Growth

• Double taxation

• Costly initial investment

• Loss of control

What type of organization operates with the goal of providing necessary services rather than making a profit?

• Partnerships

• Corporations

• Franchises

• Non-profit organizations

What is the government's role in a market economy?

• Creating policies to improve market outcomes

• Regulating industries to ensure safety and fairness

• Supervising actions of companies to prevent monopolies

• All of the above

What can be the unintended consequence of government policies in a market economy?

• Achieving desired outcomes

• Promoting fair competition

• Ensuring public welfare

• Long-term impact of the highway system