Econ Chapter 3 Test

Kai has an old smartphone that can no longer run the latest apps or receive software updates. What term describes this situation in which a product or technology becomes outdated or no longer useful?

• A) Patent

• B) Copyright

• C) Obsolescence

• D) Infrastructure

Emma invents a new and useful device that helps save energy at home. What legal protection can she apply for to protect her invention?

• A) Market Failure

• B) Patent

• C) Public Sector

• D) Externality

Jackson writes a novel and wants to ensure that only he has the legal right to reproduce, publish, or sell his book. Which term refers to this exclusive legal right?

• A) Copyright

• B) Grant

• C) Work Ethic

• D) Infrastructure

Emma always arrives at work on time, completes her tasks diligently, and takes responsibility for her actions. What is the term for this strong belief in the value of hard work and responsibility?

• A) Public Good

• B) Work Ethic

• C) Market Failure

• D) Free Rider

Henry wants to open his own bakery in his town without needing special government approval or having the government set his prices. What is the primary feature of the American free enterprise system that allows him to do this?

• A) Government control of prices

• B) Centralized decision-making

• C) Freedom to start and operate a private business

• D) Equal distribution of resources by the government

Liam owns a small bakery and decides to introduce a new line of pastries, hoping that the unique flavors will attract more customers and increase his earnings. Which of the following best illustrates the profit motive in a free enterprise system?

• A) The government sets minimum prices for essential goods.

• B) A business owner takes risks to earn higher profits.

• C) Workers receive fixed salaries regardless of performance.

• D) Consumers are restricted in their choice of goods.

Ethan notices that everyone in his city can use the local park, and no one is excluded from enjoying it, regardless of whether they pay for it or not. This type of product or service, often provided by the government, is called a:

• A) Private Sector

• B) Public Good

• C) Cash Transfer

• D) Patent

Charlotte is researching different types of organizations for her economics class. She wants to know which sector includes government agencies and services. Which sector should she choose?

• A) Private Sector

• B) Infrastructure

• C) Public Sector

• D) Externality

Rohan is researching different types of businesses for his economics class. He learns that some businesses are owned by individuals, while others are owned by the government. What term refers to businesses and industries that are owned by individuals rather than the government?

• A) Public Sector

• B) Free Rider

• C) Private Sector

• D) Welfare

David is working on a city project that involves building new roads, repairing old bridges, and upgrading power lines. These are examples of:

• A) Infrastructure

• B) Market Failure

• C) Copyright

• D) In-Kind Benefits