EPF Lesson 1.05b CC

Which of these is a main feature of the market economy?

•   The profit motive

•   Governmental regulation

•   Lack of private ownership of resources

•   Restricted resource use.

In a ___________________ economy, the government is minimally involved in the functioning of the economy but does act to protect consumers and impose some regulations on the market.

• mixed

• command

• perfectly competitive

• market

The concept of ______________________ refers to the ability of consumers to determine the types of goods and services that will be offered in an economy, based on where they spend their money.

• consumer sovereignty

• consumer markets

• mixed economy

• profit

Within a _____________ economy, we often see both producers and consumers responding to the incentive of price changes.

• market

• command

• perfectly competitive

• traditional

Private ownership of resources exists in _________________ and _________________ economies. (Choose 2.)

• mixed

• market

• command

• traditional

The ability of an individual to own resources and use them in any legal way they see fit is known as _________________________.

• private ownership

• the profit motive

• consumer sovereignty

• regulation

The United States is a mixed economy, with nearly all of the characteristics of a ______ economy.

• market

• command

• traditional

Voluntary exchange means that you _________________________________.

• willingly trade your resources for a product or service

• pay taxes

• seek the lowest price product from a list of possible choices

•  require the government to give you permission to buy something

Producers in the market economy are competing for customers, so they often have _________________________ than other types of economies.

•   lower prices

•   less variety of product

•   more governmental regulation

•   less property ownership

In a market economy, the price of goods and services is determined by ________________.

• Supply and Demand

• Government Regulations

• Monopolies

• International Trade