Economics

What is a market economy?

• An economic system in which individuals are free to compete, to earn a living, to earn a profit and to own property

• A business organization owned by one person

• A company that controls all production of a good or service

• An economic system based on private ownership of the means of production

What does 'free market' refer to?

• A business organization in which two or more persons share responsibilities

• An economic system in which buyers and sellers are free to exchange goods and services as they choose

• Profits paid to corporate stockholders

• The problem of limited resources

What is profit?

• An economic rule that states businesses will provide more products at higher prices

• A business organization chartered by a state government

• The income a business has left after paying expenses

• A share of ownership in a corporation

What does scarcity refer to?

• An economic system in which individuals are free to compete

• A company that controls all production of a good or service

• The problem of limited resources

• Profits paid to corporate stockholders

What is the law of supply?

• A business organization owned by one person

• An economic rule that states buyers will demand more products at lower prices

• A business organization that provides goods and services without seeking to earn a profit

• An economic rule that states the businesses will provide more products when they can sell them at higher prices

What is the law of demand?

• An economic system based on private ownership of the means of production

• An economic rule that states that buyers will demand more products when they can buy them at lower prices

• A company that controls all production of a good or service

• A business organization in which two or more persons share responsibilities

What does free enterprise allow?

• Buyers and sellers to exchange goods and services as they choose

• A business organization to be owned by one person

• Businesses to provide more products when they can sell them at higher prices

• Business owners in a free market to run their businesses with little government interference

What is capitalism?

• A business organization chartered by a state government

• A company that controls all production of a good or service

• The income a business has left after paying expenses

• An economic system based on private ownership of the means of production

What is a monopoly?

• Profits paid to corporate stockholders

• A business organization owned by one person

• An economic system in which buyers and sellers are free to exchange goods and services

• A company that controls all production of a good or service

What is a sole proprietorship?

• A company that controls all production of a good or service

• A business organization owned by one person

• An economic system based on private ownership of the means of production

• A business organization in which two or more persons share responsibilities