ECONOMICS: CHAPTER 3 SECTION 1: BENEFITS OF A FREE ENTERPRISE

The principle of voluntary exchange promotes market competition by: (a)  

• Encouraging innovation

• Reducing prices

• Increasing consumer choice

• Enhancing product quality

An interest group is:

• a group of people who share common objectives and actively seek to influence policymakers.

• a group of people who are interested in a particular hobby.

• a group of people who are not interested in politics.

• a group of people who work in the same industry.

The right of eminent domain is:

• the government's power to take private property for public use, with compensation.

• individuals' right to claim public land.

• corporations' ability to seize land for private development.

• citizens' right to refuse government projects on their land.

Inequality or discrimination can hurt an economy's ability to maximize its human capital. Which of the following is an example?

• Reduced access to education for certain groups

• Increased investment in technology

• Equal employment opportunities for all

• Higher tax rates for the wealthy

How do your consumer decisions impact the economy?

• Increasing demand for goods and services

• Decreasing the supply of money

• Having no impact on the economy

• Only affecting local businesses