Econ 3.1 Quiz

The free enterprise system is:

• a government-controlled economy.

• an economic system where businesses operate with little government intervention.

• a system where all businesses are owned by the state.

• an economic model that eliminates competition.

Where does the free enterprise system operate?

• In a controlled economy

• In a free market economy

• In a command economy

• In a mixed economy

Provide an example and description of the free enterprise system.

• A system where the government controls all businesses and resources.

• A system where private individuals own and operate the majority of businesses with minimal government intervention.

• A system where businesses are owned by the community as a whole.

• A system where businesses are owned and operated by foreign entities.

List the necessary rights and freedoms in the free enterprise system.

• necessary rights and freedoms in the free enterprise system

• government control over resources

• monopoly power

• centralized economic planning

Provide an example of how the free enterprise system works.

• A local bakery decides to expand its business by opening a new store.

• The government sets prices for all goods and services.

• A company is required to get government approval before launching a new product.

• All businesses in a city are owned by the government.

Provide another example of how the free enterprise system works.

• A new restaurant opens in a competitive market.

• A government agency regulates prices.

• A non-profit organization receives a donation.

• A public school offers free education.

Who has promoted the free enterprise system?

• Adam Smith

• Karl Marx

• John Maynard Keynes

• Milton Friedman

Summarize the idea of the free enterprise system.

• A system where the government controls all businesses.

• A system where private businesses operate with minimal government regulation.

• A system where businesses are owned by the community.

• A system where businesses are only run by the government.

VOCABULARY HUNT: The 'free enterprise system' refers to a type of economic system characterized by:

• Government control over all businesses

• Private ownership and minimal government interference

• Complete absence of any regulations

• State ownership of all resources

VOCABULARY HUNT: What is the meaning of 'open opportunity'?

• A chance that is available to everyone

• A closed door

• A secret mission

• A hidden agenda