Economy Quiz

What type of economy does the United States have according to the text?

• Command economy

• Free market economy

• Mixed economy

• Traditional economy

Which characteristic of the U.S. economy allows individuals to own property and produce goods and services without governmental interference?

• Free markets

• Private property

• Consumer sovereignty

• Competition

What are the three main types of profit-seeking business organizations mentioned in the text?

• Sole proprietorships, partnerships, and corporations

• Partnerships, corporations, and non-profits

• Corporations, franchises, and cooperatives

• Monopolies, oligopolies, and cartels

In a partnership, how are risks and profits shared?

• One owner takes all the risks and profits

• Risks and profits are shared equally among all employees

• Risks and profits are shared by the government and the owners

• Risks and profits are shared between two or more owners

What is the role of an entrepreneur in the United States economy?

• To take financial risks and produce goods and services for a profit

• To manage governmental policies regarding the economy

• To ensure that the market remains a free market environment

• To distribute profits equally among all stakeholders

What is the definition of price in the context of the United States economy?

• The amount of goods available in the market

• The amount of money that is exchanged for a good or service

• The cost of production for goods and services

• The total value of goods and services produced in a year

What does supply refer to in the concept of supply and demand?

• The amount of a good or service consumers are willing to buy at a certain price

• The interaction of supply and demand that determines price

• The amount of a good or service producers are willing and able to sell at a certain price

• The equilibrium point where supply equals demand

What does demand refer to in the concept of supply and demand?

• The amount of a good or service producers are willing and able to sell at a certain price

• The interaction of supply and demand that determines price

• The amount of a good or service consumers are willing and able to buy at a certain price

• The equilibrium point where supply equals demand

What is the equilibrium price?

• The price at which the demand for a product or service is higher than the supply

• The price at which the supply of a product or service is higher than the demand

• The price at which the demand for a product or service is equal to the supply of that product or service

• The price set by the government for essential goods and services