WorksheetsFree Enterprise, Supply and Demand, and Price
Total questions: 20
Worksheet time: 2hrs 40mins
One of the characteristics of a capitalist free enterprise economy is _______ .
voluntary exchange
consumerism
the minimum wage
central planning
The struggle among sellers to attract consumers is known as
consumer sovereignty
voluntary exchange
profit motive
competition
Which of the following is a market economy in which people freely carry on economic affairs but are subject to some government regulation?
traditional economy
modified free enterprise economy
socialist economy
command economy
_______ protect consumers against harm from products on the market.
Franchises
Private property rights
Government regulations
Profit motives
Which of the following is largely responsible for the growth of a free enterprise system?
government
Gross Domestic Product
market efficiency
profit motive
Consumers in a free enterprise economy ultimately determine _______ to produce.
when
what
how
where
Markets in the free enterprise system are seldom regulated by _______.
businesses
consumers
the government
entrepreneurs
What are the characteristics of demand?
the desire and ability to buy a product
the ability and willingness to buy a product
the willingness and desire to buy a product
the desire, ability, and willingness to buy a product
Rule stating that more will be demanded at lower prices and less at higher prices
Law of Supply
Law of Demand
substitution effect
income effect
Changes in quantity demanded and changes in price have a(n) _________ relationship.
indirect
direct
inverse
positive
Products related in such a way that an increase in the price of one reduces the demand for the other
complements
mutual
replacement
substitution
What is the income effect?
a change in quantity demanded caused by a change in consumer income
a change in demand caused by substitution
a proportional change in quantity demanded based on income
an increase in purchase of complements based on an increase in income
Which would an economist consider a likely substitute for coffee?
water
tea
chicken
donuts
The principle that more will be offered for sale at higher prices than at lower prices is called the
revenue
Law of Supply
profit
Law of Demand
A government payment to encourage or protect a certain economic activity is known as a(n)
tax
stimulus
subsidy
socialism
Which term denotes the change in total cost when one additional unit of output is added?
change in supply
production costs
supply schedule
marginal cost
A ___________ is a situation where quantity supplied is greater than quantity demanded at a
given price.
competition
surplus
sale
shortage
A ________ is a situation where quantity supplied is less than quantity demanded at a given
price
limit
surplus
sale
shortage
A ________ is the monetary value of a product decided by supply and demand.
price
sale
competition
capital
Which product most likely has a demand that is inelastic?
a meal at a restaurant
a vital medicine
green beans
a vacation
