Week 27-Free Enterprise

What type of economic system does the United States have?

• Command economy

• Mixed economy

• Free enterprise system

• Traditional economy

What does a free enterprise system mean in terms of government control of the market?

• The government sets the price of goods and services.

• The government controls the market completely.

• The government does not control the market.

• The government tells people what they can make or sell.

Who can start their own business in a free enterprise system?

• Only government-approved individuals

• Only people with a certain level of income

• Anyone who meets strict regulatory standards

• Anybody based on people's needs and wants

What does the price of a good or service depend on first according to the text?

• The number of stores selling it

• How much of the good there is for people to buy

• The quality of the good

• The brand of the good

What is the term used when the supply is low and the demand is high?

• Equilibrium

• Surplus

• Scarcity

• Excess

What happens to the price when the supply is high and the demand is low?

• The price goes up

• The price stays the same

• The price goes down

• The price fluctuates unpredictably

What is a surplus?

• When the demand is higher than the supply

• When the supply of a good or service is less than the demand

• When the supply of a good or service is more than the demand

• When there is no change in supply and demand

According to the text, who may have a hard time making enough money when there is a surplus?

• Consumers

• Families

• Producers

• Retailers

Why does the cost of a good usually go down over time?

• The good becomes scarce.

• Goods always go up in price.

• Fewer people want the good.

• The good costs more to make.

What is an example of scarcity?

• Raul has eight pairs of shoes.

• Cari brought five new pencils to school.

• Coach Johnson has two bottles of water for the team.

• The Adams family picked 15 tomatoes from their garden.