Econ Chapter 3 Test

What term describes a situation in which a product or technology becomes outdated or no longer useful?

• A) Patent
• B) Copyright
• C) Obsolescence
• D) Infrastructure

What is a legal protection given to an inventor for a new and useful invention?

• A) Market Failure
• B) Patent
• C) Public Sector
• D) Externality

Which term refers to the exclusive legal right to reproduce, publish, or sell a creative work such as a book or movie?

• A) Copyright
• B) Grant
• C) Work Ethic
• D) Infrastructure

What is the term for a strong belief in the value of hard work and responsibility?

• A) Public Good
• B) Work Ethic
• C) Market Failure
• D) Free Rider

What is the primary feature of the American free enterprise system?

• 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

Which of the following is an example of 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.

A product or service that benefits everyone in society and is often provided by the government is called a:

• A) Private Sector
• B) Public Good
• C) Cash Transfer
• D) Patent

Which sector includes government agencies and services?

• A) Private Sector
• B) Infrastructure
• C) Public Sector
• D) Externality

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

Roads, bridges, and power lines are examples of:

• A) Infrastructure
• B) Market Failure
• C) Copyright
• D) In-Kind Benefits