3.2 Quiz

An (a)   is a risk-taking individual in search of profits.

In a market, the (a)   is the ruler by determining the goods and services produced.

An economic system with a combination of command, traditional, and market economies is known as a (a)   .

The national government plays the role of (a)   by preserving marketplace competition.

An entrepreneur acts as (a)   and spark plug, stimulating activity among forces or people.

The phrase “the customer is always right” is most often associated with what term?

• entrepreneurship

• consumer sovereignty

• mixed economy

• regulatory government

In its role as a regulator, what is the government’s primary responsibility?

• It takes a “hands-off” approach to business.

• It tells businesses what to produce and what to sell.

• It interferes with business only when it is profitable.

• It establishes laws and rules to maintain competition.

In its role as protector of the American free enterprise system, one of the issues the government must deal with is ________.

• environmental hazards

• weeding out corruption

• helping businesses get started

• overseeing communications

Who ultimately determines the success of a product?

• the government

• the business producing the product

• the consumer

• the store selling the product

Consumers can influence the production and sale of goods by ________.

• “voting” with their dollars

• saving their money

• reducing their spending habits

• paying off their debt