Quiz 4 Review

Market economies are based on ________ ownership and voluntary exchange, which must be protected by the government.

• private

• public

• communal

• state

What are contracts?

• Informal promises between friends

• Legal agreements between buyers and sellers which establish the rights of each side

• Government regulations

• None of the above

The government helps protect the rights of each side in a contract.

• True

• False

Fill in the blank: ________ or services are provided by private ownership, and you pay for the whole product, and you receive the whole product.

• Private goods

• Public goods

• Club goods

• Common resources

Which type of goods and services are provided by local, state, and federal governments, where you receive shared benefits and pay shared costs?

• Private goods

• Public goods

• Luxury goods

• Imported goods

What are transfer payments? Fill in the blank: Transfer payments are the payments that require no _______ in return. It is the redistribution of income.

• services

• taxes

• goods

• loans

Which of the following is NOT an example of a transfer payment?

• Welfare benefits

• Food stamps

• Buying a car

• Subsidized housing

Market economies always guarantee that every consumer can afford goods and services.

• True

• False

List two examples of transfer payments mentioned in the passage.

• Old age pensions and unemployment benefits

• Income tax and sales tax

• Export earnings and import payments

• Wages and salaries

A ________ is when one company controls the majority share of a product or market.

• MONOPOLY

• OLIGOPOLY

• FRANCHISE

• PARTNERSHIP