Free Enterprise System Quiz

What is the free enterprise system?

• A system where the government controls all businesses

• An economic system where producers and consumers have choices

• A system where only producers have choices

• A system where only consumers have choices

Who are considered producers in the free enterprise system?

• People who buy goods

• People who make goods to sell

• People who work for the government

• People who only consume goods

What do consumers do in the free enterprise system?

• They make goods to sell

• They have no choice in what to buy

• They choose what they would like to buy

• They control the government

What is a profit?

• The cost of making goods

• The extra money made above costs

• The total money spent on goods

• The money given to the government

What happens when the demand is high for an item or service?

• The price usually goes down

• The price usually goes up

• The item becomes free

• The item is no longer available

What is the role of the government in the free enterprise system?

• To decide what businesses can sell

• To control all prices

• To not tell producers what to do

• To own all businesses

What do producers decide in the free enterprise system?

• What type of business to run and what goods to sell

• What consumers should buy

• How much money the government should make

• What other countries should sell

What is the free enterprise system based on?

• A system of government control

• A system of supply and demand

• A system of fixed prices

• A system of random choices

What do producers hope to achieve in the free enterprise system?

• To lose money

• To make a profit

• To give away goods for free

• To have no competition

What happens when producers set the price for an item?

• They set it for less than it costs to make

• They set it for more than it costs to make

• They set it for exactly what it costs to make

• They let the government set the price