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Competition & Free Enterprise

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

Another word used to describe a free enterprise system is:

a)

communism

b)

capitalism

c)

nationalism

d)

none of the above

2.

In a free enterprise system, the government places ________________ restrictions on businesses and its citizens:

a)

minimum

b)

maximum

c)

normal

d)

abnormal

3.

This nations government does NOT use a free enterprise system:

a)

Canada

b)

United States

c)

North Korea

d)

South Korea

4.

True or False:


The U.S. government allows businesses to produce and sell

products which express an opinion:

a)

True

b)

False

5.

All of the following are characteristics of a free enterprise system EXCEPT:

a)

freedom to pursue an education

b)

freedom to seek employment

c)

freedom to scam others

d)

freedom to purchase property

6.

In a free enterprise system, the spending habits of _____ determine which products and services to offer:

a)

Consumers

b)

Government

c)

Professors

d)

Politicians

7.

This is an individual who purchases a good or service for their own consumption:

a)

Consumer

b)

Profit

c)

Entrepreneur

d)

Economist

8.

In this type of economy, the goods and services produced are for the producers own consumption (they don’t sell the goods to earn a profit):

a)

Command Economy

b)

Competition

c)

Traditional Economy

d)

Scarcity

9.

When two or more businesses produce and sell similar products and compete against each other

a)

War

b)

Competition

c)

Game

d)

Scarcity

10.

Occurs when the resources to produce goods, or offer services are limited and/or costly

a)

Competition

b)

Economic System

c)

Scarcity

d)

Profit

11.

The amount of money a business earns when selling a good

a)

Profit

b)

Consumer

c)

Entrepeneur

d)

Competition

12.

Competition does NOT encourage companies to do which of the following?

a)

Decrease advertising

b)

Improve products

c)

Reduce prices

d)

Target different markets

13.

Laissez-faire is a Danish term which literally translates to “to each his own.”

a)

True

b)

False

14.

Which economic system prohibits the private ownership and management of resources and emphasizes income and wealth equality?

a)

Capitalism

b)

Communism

c)

Free enterprise

d)

Socialism

15.

__________ accounts for all income before deductions, but __________ is monetary gain after subtracting operating costs.

a)

Principle; return

b)

Profit; revenue

c)

Return; principle

d)

Revenue; profit

16.

Which of the following allow fair access to markets for entrepreneurs and are sometimes known as competition laws?

a)

Anti-trust laws

b)

Capitalistic laws

c)

Free enterprise laws

d)

Trade laws

17.

Which type of market structure has only one firm producing a product?

a)

Monopolistic competition

b)

Monopoly

c)

Oligopoly

d)

Pure competition

18.
The concept that people have the right and privilege to control their possessions as they wish.
a)
legal equality
b)
open opportunity
c)
private property
d)
profit incentive
19.
The concept of giving everyone the same legal rights, equal protections & due process of law.
a)
profit incentive
b)
legal equality
c)
open opportunity
d)
open market
20.
The concept that people may decide what and when they want to buy and sell goods & services
a)
voluntary exchange
b)
legal equality
c)
private property
d)
open opportunity
21.
This is the study of the behavior/decision making of entire economies, not individuals.
a)
microeconomics
b)
macroeconomics
c)
finite economics
d)
economic models
22.
This is the study of the behavior/decision making of individuals & businesses. 
a)
microeconomics
b)
macroeconomics
c)
recession
d)
expansion
23.
What is the best measure of the economic well-being of a country?
a)
net worth
b)
GDP
c)
open market value of goods
d)
the daily stock market performance
24.

What type of economic system does the United States use?

a)

Traditional Market

b)

Free Enterprise

c)

Command Market

d)

Socialist Enterprise

25.

What is a benefit of the "freedom to choose your own job?"

a)

People are more productive and happier

b)

People can afford to make money off the land they own

c)

Better Quality Items at Lower Cost

d)

Motivates people to work hard

26.

What happens if only one company in the whole world produced every cell phone in the world?

a)

They could charge whatever they want

b)

Better quality items

c)

Lower prices

d)

Better apps

27.

French term meaning “let do,” belief that the government should have a hands off approach and stay out of the economy

a)

laissez-faire

b)

bonjour

c)

competition

d)

je suis

28.

income before any deductions are taken out

a)

revenue

b)

income

c)

profit

d)

checking

29.

The dairy farmer MILKING the COWS is...

a)

production

b)

distribution

c)

consumption

d)

economics

30.

The truck delivering dairy products to the grocery store is...

a)

production

b)

distribution

c)

consumption

d)

economics

31.

You, at home, drinking the milk with cookies is...

a)

production

b)

distribution

c)

consumption

d)

economics

32.

Cotton being harvested from the field is...

a)

production

b)

distribution

c)

consumption

d)

economics

33.

Cotton being used to make t-shirts at a factory is...

a)

production

b)

distribution

c)

consumption

d)

economics

34.

T-shirt being purchased by your parent for you to wear is...

a)

production

b)

distribution

c)

consumption

d)

economics

35.

The government tries to keep a (a)   and build confidence in the economy.

Choose from the below words
positive economic climate
regulatory consistency
socialist free market