Eco: (2.41) Characteristics of Am. Free Ent. Quiz

1. Which characteristic of free enterprise is the act of buyers & sellers freely & willingly engaging in market transactions?

• Economic Freedom
• Voluntary Exchange
• Private Property Rights
• Profit Motive
• Competition

2. What is an economic system in which private citizens own and use the factors of production in order to generate profits?

• socialism
• individualism
• communism
• capitalism

3. The difference between revenue from sales and the full opportunity cost of resources involved in producing the products sold is called what?

• profit
• competition
• stock
• inventory

4. The struggle among sellers to attract consumers is called what?

• profit
• competition
• stock
• inventory

5. Which characteristic of free enterprise gives consumers a choice in buying decisions and businesses a choice in hiring decisions?

• Economic Freedom
• Voluntary Exchange
• Private property Rights
• Profit Motive
• Competition

6. Which characteristic of free enterprise provides an incentive to improve one’s material well-being?

• Economic Freedom
• Voluntary Exchange
• Private Property Rights
• Profit Motive
• Competition

7. Which characteristic of free enterprise assures that unpopular products will cease to be on the market?

• Economic Freedom
• Voluntary Exchange
• Private Property Rights
• Profit Motive
• Competition

8. Which characteristic of free enterprise guarantees a never-ending supply of goods and services?

• Economic Freedom
• Voluntary Exchange
• Private Property Rights
• Profit Motive
• Competition

9. Which characteristic of free enterprise allows individuals to own and control their possessions as they wish?

• Economic Freedom
• Voluntary Exchange
• Private Property Rights
• Profit Motive
• Competition

10. Which characteristic of free enterprise ensures that the most efficient producers will survive, while the least efficient are forced to shut down or change production methods?

• Economic Freedom
• Voluntary Exchange
• Private property Rights
• Profit Motive
• Competition