Free Enterprise System Quiz

What is the basis of the free enterprise system?

• Government ownership of businesses

• Limited government involvement

• Strict government regulations

• Government control of prices

What is the main motivating force of the Free Market System?

• Social welfare

• Economic self-interest

• Government intervention

• Charitable donations

What is the function of prices in the market system?

• Determining the quantity of goods produced

• Rationing scarce resources and guiding economic choices

• Limiting competition among businesses

• Controlling government regulations

What is the role of the government in a free market system?

• To restrict the freedom of enterprise and choice

• To limit the use of technology and capital goods

• To impose and enforce broad legal limits and provide necessary regulation

• To own and control all businesses

What is the purpose of specialization in the free market economy?

• To improve productivity through repetition and use of ability differences

• To discourage international trade

• To decrease productivity and increase costs

• To limit the variety of goods and services available

What is the key function of money in the economy?

• To control the supply and demand of goods

• To serve as a medium of exchange and enable specialization

• To eliminate the need for trade and exchange

• To create inflation and devalue goods and services

Who is considered the 'Father of Economics'?

• Adam Smith

• Karl Marx

• Milton Friedman

• John Maynard Keynes

What is the concept of 'The Invisible Hand' in economics?

• The regulation of businesses by international organizations

• The government's hidden control over the market

• The influence of consumer preferences on prices

• The idea that self-interest and competition lead to economic prosperity

What is the purpose of a patent in the free enterprise system?

• To regulate the prices of goods and services

• To restrict the use of technology and innovation

• To grant exclusive rights to an invention for a limited time

• To protect the rights of workers

What is the function of a trademark in business?

• To limit the use of certain words or symbols

• To control the supply and demand of products

• To prevent competition and monopolies

• To identify a good or service and protect it from unauthorized use