Economics Quiz

What type of economy does the U.S. have?

• Command economy

• Free market economy

• Mixed economy

• Traditional economy

What is the purpose of anti-trust laws?

• To promote monopolies

• To reduce competition

• To prohibit monopolies and reduce competition

• To encourage foreign trade

What is the role of the Federal Trade Commission (FTC)?

• To promote monopolies

• To stop companies from competing unfairly

• To control all businesses

• To manage foreign trade

What is the effect of tariffs on foreign goods?

• Makes foreign goods cheaper

• Makes foreign goods more expensive

• Encourages citizens to buy foreign products

• Reduces competition

What does the FCC do to protect consumers?

• Promotes monopolies

• Encourages foreign trade

• Cracks down on companies that make illegal charges

• Controls all businesses

What is an economy?

• A system where goods and services are produced and consumed.

• A place where people go to buy food.

• A type of government.

• A method of transportation.

Who is a consumer?

• Someone who produces goods.

• Someone who buys goods or services.

• Someone who sells goods.

• Someone who makes laws.

What motivates producers to produce goods or services?

• The desire to help others.

• The need to use up resources.

• The profits they expect to gain.

• The requirement to follow government orders.

What happens when two or more producers offer the same goods or services?

• They stop producing.

• They work together.

• They compete with each other.

• They increase prices.

What is the process of developing new, better things called?

• Competition.

• Innovation.

• Production.

• Consumption.