Free Market Economy Quiz

What is a market?

• A place where buyers and sellers exchange goods and services

• A place where only buyers exchange goods and services

• A place where only sellers exchange goods and services

• A place where goods and services are produced

What is a free market economy?

• An economic system where the government controls all economic decisions

• An economic system where individuals and businesses make their own decisions in the market

• An economic system where goods and services are produced by the government

• An economic system where individuals and businesses have no control over economic decisions

What are the three key economic questions determined in a free market economy?

• What to buy, how much to buy, and for whom to buy

• What to produce, how much to produce, and for whom to produce

• What to sell, how much to sell, and for whom to sell

• What to consume, how much to consume, and for whom to consume

Who makes the decisions about what to buy and sell in a free market economy?

• Government

• Individuals and privately owned businesses

• Buyers and sellers collectively

• Non-profit organizations

What is a public good?

• A resource that benefits only a few individuals

• A resource that benefits nobody

• A resource that benefits everybody regardless of their contribution

• A resource that benefits only the government

What are the 3 economic questions?

In a free market, choices made by (a)  

In a Command Economy, choices made by the (a)  

Pick 1 public goods  

1. what that public good is and what it is used for?

2. Where is that public good located?

3. How do people benefit from using it?

What is one Negative and Positive Characteristic of a Market Economy?