United States Economy CE 12a-f 13a-f

What type of economy is the United States best described as? (CE.12a)

• Command economy
• Traditional economy
• Mixed economy
• Pure free market economy

In the United States economy, who primarily determines what goods and services are produced? (CE.12a)

• The federal government
• Consumers
• Business owners
• State legislatures

What happens in a market economy when the price of a good rises? (CE.12b)

• Consumers tend to buy more of it
• Consumers tend to buy less of it
• Demand stays the same
• Supply decreases

What is the point at which supply and demand meet in a market economy? (CE.12b)

• Price floor
• Price ceiling
• Equilibrium price
• Market failure

Which type of business is owned by one person who assumes all risks and keeps all profits? (CE.12c)

• Proprietorship
• Corporation
• Partnership
• Franchise

What is the main role of an entrepreneur in the economy? (CE.12c)

• To enforce government regulations
• To reduce profits for businesses
• To take risks to produce goods and services for profit
• To manage government-owned companies

In the circular flow model, what do businesses do with the resources they purchase from households? (CE.12d)

• Lend them to banks
• Save them for future use
• Use them to produce goods and services
• Exchange them for taxes

What do private financial institutions primarily do? (CE.12e)

• Collect taxes for the government
• Set national interest rates
• Receive deposits and make loans
• Print and distribute currency

One reason the United States and Virginia trade with other countries is to: (CE.12f)

• Avoid using technology in production
• Eliminate domestic competition
• Maintain a traditional economy
• Obtain goods they cannot efficiently produce themselves

What is one way the government promotes competition in the marketplace? (CE.13a)

• By setting all prices for goods and services
• By enforcing antitrust laws
• By limiting foreign trade
• By requiring government ownership of businesses