Econ Chapter 2

Which group of people ultimately decides the products that a free enterprise economy produces?

• Congress

• local government

• property owners

• consumers

The United States can best be described as having what kind of economy?

• modified free enterprise

• command economy

• traditional system

• pure free enterprise

Who plays one of the most important roles in the free enterprise system by starting new businesses?

• entrepreneurs

• workers

• government

• consumers

According to Adam Smith, what directs the choices business people make about how to use their resources?

• government

• desire to benefit society

• economic equity

• profit

What are the characteristics of a traditional economy?

• it discourages new ideas and new ways of doing things

• it has a great deal of economic freedom

• public services are available at little or no cost

• it provides workers with few incentives to work hard

A market economy...

• does not provide for everyone's basic needs

• permits extensive government intervention

• limits the choices of goods and services available

• offers a high degree of certainty for its workers

The minimum wage is an example of a federal law that supports which economic goal?

• economic growth

• full employment

• economic equity

• economic efficiency

Which of the economic systems can change direction quickly and drastically?

• traditional

• market

• command

• mixed

What characteristic of free enterprise is missing? freedom, property rights, voluntary exchange, profit motive and...

• communism

• inflation

• competition

• economic equity

The four types of economic systems are:

• Communism, Capitalism, Free Market, and Macroeconomics

• Traditional, Command, Mixed, & Market

• Traditional, Command, Combined, & Market

• Microeconomics, Macroeconomics, Individual, and Traditional.