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Free Enterprise Review (Economics)

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

This is another name for capitalism

a)

Free Contract

b)

Free Enterprise

c)

Infrastructure

d)

Legal Equality

2.

What makes a Free Enterprise system Capitalist in nature

a)

Anyone is free to start a business or enterprise

b)

Everyone makes the same amount of money

c)

Everyone must own a business

d)

There is extreme government intervention

3.

What is the ability of everyone to take part in the market by free choice?

a)

Legal Equality

b)

Free Contract

c)

Profit Motive

d)

Open Opportunity

4.

What is another name for "a situation in which everyone has the same economic rights under the law"?

a)

Positive Externality

b)

Negative Externality

c)

Legal Equality

d)

Open Opportunity

5.

What is the name of the force that encourages people and organizations to improve their material well-being from economic activities?

a)

Market Failure

b)

Profit Motive

c)

Positive Externality

d)

Free Rider

6.

What occurs when people who do not take part within an economic transaction benefit from it?

a)

Negative Externality

b)

A Modified Free Enterprise Comes into Play

c)

Market Failure

d)

Wellfare is revoked

7.

What is infrastructure?

a)

Consists of all the goods and services that are necessary for the functioning of society

b)

Consists of all the government funding of goods and services for the poorer consumers

c)

Consists of all the taxes that are used to pay for public transfer payments

d)

Consists of all the goods and services that are extra within the functioning of society

8.

What is the side effect of products and/or services that affect someone other than the producer or buyer?

a)

Profit

b)

Infrastructure

c)

Subsidy

d)

Externality

9.

What is a subsidy?

a)

A government payment that helps cover the cost of an economic activity

b)

A payment in which the government transfers income from taxpayers to recipients who do not provide anything in return

c)

A product that is provided by a federal, state, and/or a local government and consumed by the public

d)

A government program designed to protect people from economic hardships

10.

Which of these is not an example of a Public Transfer Payment?

a)

Medicare

b)

Food Stamps

c)

Social Security

d)

Government Loans

11.

What is an example of a free rider?

a)

A grandmother giving money to her graduating grandchild

b)

Someone watching a fireworks display

c)

Somebody splitting a hotel bill down the middle with another person

d)

A child purchasing a powerup on Subway Surfers

12.

How are entrepreneurs important within the economy?

a)

They buy lots of products

b)

They provide many jobs

c)

They give out free benefits

d)

They make a ton of money to offset the poorer consumers

13.

Why do producers enter a Free Enterprise Economy?

a)

To make products

b)

To seek profit

c)

To provide income to lower class consumers

d)

To create services for people

14.

What is a person who benefits from economic transactions they are not a part of?

a)

Economist

b)

Entrepreneur

c)

Externality

d)

Free Rider

15.

What is an example of a negative externality?

a)

Fewer Oil Rigs

b)

Industrial Pollution

c)

Less Toxic Waste

d)

Smaller buildings