Econ 3.1 Quiz

When an economy is capitalist and has free markets, it can be said that the economy is based on ______________ _______________.

(a)  

One of the characteristics of the U.S. economy is the (a)   role of the government.

Between 2007 and 2009, the U.S. went through a difficult economic period called the ______________ _______________.

(a)  

(a)   motive is what drives people and organizations to improve their material well-being.

______________ ______________ rights allow people to own and control their possessions as they see fit, as long as it does not interfere with the rights of others.

(a)  

The three synonymous terms to describe the U.S. economic system are free enterprise, capitalism, and _________.

• limited role of government

• competition

• free market

• economic freedom

The dollar value of all final goods, services, and structures produced in a country in a year is known as _________.

• Gross Domestic Product

• Gross National Product

• franchise

• profit motive

The struggle among sellers to attract consumers by offering the best products at the lowest prices is known as _________.

• voluntary exchange

• profit motive

• property rights

• competition

Private property gives people the incentive to work, save, and _________.

• buy

• invest

• compete

• produce

What gives people and businesses the opportunity to make their own decisions?

• profit motive

• economic freedom

• command economy

• free enterprise