Free Enterprise Economy Quiz

What is the economic system in which private citizens own and use the factors of production to make products and generate profits?

• Socialism

• Capitalism

• Fascism

• Communism

What is the condition called when products can be bought and sold in markets without government regulation or interference?

• Restricted markets

• Free markets

• Controlled markets

• Regulated markets

Which characteristic of capitalism allows businesses to hire workers of their choice and produce products they think will be most profitable?

• Economic freedom

• Voluntary exchange

• Private property rights

• The profit motive

What is the act of buyers and sellers freely and willingly engaging in market transactions called?

• Forced exchange

• Mandatory exchange

• Voluntary exchange

• Compulsory exchange

Which feature of capitalism allows people to own and control their possessions as they wish?

• State property rights

• Public property rights

• Private property rights

• Government property rights

What is the incentive largely responsible for the growth of a free enterprise system?

• The control motive

• The power motive

• The profit motive

• The dominance motive

What is the struggle among sellers to attract consumers with the best products at the lowest prices called?

• Competition

• Cooperation

• Collaboration

• Conformity

What is the term that recognizes the role of the consumer as the ruler of the market?

• Consumer autocracy

• Consumer monarchy

• Consumer sovereignty

• Consumer dictatorship

What is the person who organizes and manages the land, capital, and labor in order to seek the reward called profit?

• Manager

• Employee

• Entrepreneur

• Investor

What is the term that reflects the power of consumers to determine what products will be produced?

• Consumer dominance

• Consumer supremacy

• Consumer sovereignty

• Consumer authority