WorksheetsEconomics - Chapter 3 Quiz "American Free Enterprise"
Total questions: 15
Worksheet time: 15mins
Name
Class
Date
1.
An economic system in which businesses compete against one another free of government control
a)
Socialism
b)
Free Enterprise
c)
Product
d)
Marketing
2.
Which group lists the key principles of the free enterprise system?
a)
private property, taxation, public interest, patriotism
b)
profit motive, legal equality, consumer protection, public interest
c)
profit motive, private property, eminent domain, voluntary exchange
d)
profit motive, legal equality, private property, voluntary exchange
3.
What is considered a negative effect of government regulation?
a)
It protects consumers but harms the environment.
b)
It is expensive for businesses to follow all of the rules.
c)
It allows businesses to sell unsafe products.
d)
It does not protect the well-being of the public.
4.
Allows the government to take private property for public use.
a)
public interest
b)
eminent domain
c)
government takey your stuffy
d)
none of 'em
5.
Pattern of economic growth and decline.
a)
stock market
b)
business cycle
c)
ebb and flow model
d)
roller coaster
6.
An economist who focuses on microeconomics might study which of the following?
a)
inflation
b)
household budgets
c)
national income averages
d)
unemployment
7.
Which are the government's three goals for promoting economic strength?
a)
steady growth, high prices, and innovation
b)
high employment, steady growth, and stability
c)
high employment, increased spending, low taxes
d)
low unemployment, low prices, and low taxes
8.
What is one way the government might try to promote economic growth?
a)
raise taxes
b)
increase spending
c)
reduce prices
d)
produce more goods
9.
Someone who benefits without paying for a good or service.
a)
free loader
b)
free rider
c)
freedom fighter
d)
free fallin'
10.
The free market cannot provide for a nation's defense - this is an example of _________.
a)
Market Operations
b)
Market Failure
c)
Market Success
d)
Market Garden
11.
Why are public goods examples of market failure?
a)
They show that the free enterprise system does not work.
b)
They show that competition in the free market is dangerous.
c)
They show that the free market cannot distribute certain resources efficiently.
d)
They show that the private sector is more efficient.
12.
How could government limit negative externalities of a highway that is routed through a heavily populated area with many houses next to it? a b c d
a)
Increase the speed limit.
b)
Build noise barriers nearby.
c)
Limit the number of vehicles.
d)
Charge higher tolls.
13.
What is one way the government encourages people to give to charity?
a)
by redistributing taxes
b)
by subsidizing donations
c)
by lowering taxes for people who donate (tax write-offs)
d)
through cash grants
14.
At which point on the business cycle would the economy start to see inflation start to increase?
a)
Expansion below the trend line.
b)
Contraction above the trend line.
c)
Expansion above the trend line.
d)
At the Peak.
15.
What percentage range is considered to be "full employment" in a nation's economy?
a)
2-4% unemployment
b)
4-6% unemployment
c)
6-8% unemployment
d)
0% unemployment
100 %
