The United States Economy

The United States economy is primarily a free market economy. However, there is some government involvement. Therefore the US is a ...

• traditional economy

• trade economy

• mixed economy

• free market economy

Which of the following is NOT a characteristic of the US economy?

• limited and few markets

• profit motive

• private property

• free enterprise

The rivalry between producers and/or between sellers of a good or service. (Usually results in better quality goods and services at lower prices.)

• consumer sovereignty

• free enterprise

• competition

• profit motive

Consumers determine through purchases what goods and services will be produced. (HINT: people can choose what to buy and where to buy it)

• private property

• consumer sovereignty

• markets

• profit

Where are most decisions regarding the production of goods and services made in the US?

• public sector (the government)

• private sectors (individuals and businesses)

Match the following items with the correct element on the graph:

• blue line

• supply

• where the red and blue lines meet

• demand

• red line

• equilibrium price

_______ is determined by the interaction of supply and demand.

• incentives

• quantity

• money

• price

Match each word with the correct definition.

• produce more at high price

• match with the other empty

• match with the other empty

• Law of Supply

• buy more at lower prices

• Law of demand

There are three basic ways that businesses organize to earn profits. Which of the following is not a way to organize a business?

• partnership

• proprietorship

• entrepreneurship

• corporation

A person who takes a risk to produce and sell goods and services in search of profit.

• entrepreneur

• buyer

• partner

• seller