Why Do People Like Free Markets?

Why Do People Like Free Markets?

Assessment

Interactive Video

Business

11th Grade - University

Easy

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Used 3+ times

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The video tutorial explores the dynamics of economic growth, focusing on market economies. It discusses Adam Smith's theories on self-interest and competition, highlighting the concept of the invisible hand. The advantages of free markets, such as economic freedom and innovation, are contrasted with their disadvantages, including monopolies and negative externalities. The tutorial concludes with a discussion on the balance between free markets and government regulation.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main benefits of economic growth mentioned in the tutorial?

Reduced competition

Increased incomes

Lower standard of living

Decreased innovation

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to Adam Smith, what keeps the marketplace functioning?

Monopolies

Public goods

Self-interest and competition

Government regulations

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What metaphor did Adam Smith use to describe the self-regulating nature of free markets?

The hidden force

The visible hand

The guiding light

The invisible hand

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT an advantage of free market economies?

Consumer sovereignty

Natural monopolies

Innovation

Economic freedom

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a natural monopoly?

A market with government intervention

A market with no competition

A market with many sellers

A market dominated by a single seller due to high startup costs

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential negative outcome of free market economies mentioned in the tutorial?

Increased public goods

Positive externalities

Improved working conditions

Race to the bottom

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do societies attempt to address the disadvantages of free market economies?

By eliminating all regulations

By balancing free markets with government intervention

By promoting monopolies

By reducing consumer choice