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WorksheetsChapter 2 Free Enterprise
Total questions: 15
Worksheet time: 8mins
The money left after production costs are subtracted from revenue is called
free rider
profit
subsidy
scarcity
A person who chooses to, and is free to, open a grocery store is participating in a
command economy
centrally-planned economy
free enterprise economy
traditional economy
Most people are inspired to start a business by the
free contract clause
marginal benefit
open opportunity clause
profit motive
What is the role of producers?
Make the product
Buy the product
to carry out a government economic program
to increase the profit of other established retail stores
Which is an example of competition changing the marketplace?
a chain bookseller forcing many individual booksellers to go out of business
a chain hot dog restaurant failing to make a large profit
a chain coffee shop having no effect on individual coffee shops
a chain restaurant expanding its menu to include desserts
Free contract means that people can chose
for themselves what legal agreements to enter into
for themselves what positive externalities to support
to enter and compete in the marketplace
to enter into open opportunities
The incentive to improve material well-being by seeking to gain from economic activities is called
legal equality
marginal benefit
open opportunity
profit motive
Government restricts free enterprise through
deregulation
income redistribution
public policy
goods and services
In the marketplace, producers are looking to
buy goods for personal use
earn a profit
find incentives
find the latest fad
Open opportunity helps to ensure that everyone is free to
be efficient
invest in stocks
start businesses
maximize production
Consumers "vote" by choosing
a product over competing products
a resource over other resources
to become entrepreneurs
to keep away from fad products
Typically, when households are shown on the right side of a circular flow model of a modified free enterprise system, businesses are located
on the left
in the center
at the top
at the bottom
The center of a typical circular flow model showing a modified free enterprise system is occupied by
businesses
products
government
resources
A modified free enterprise system
is dominated by elements of the command economic system
is dominated by elements of the traditional economic system
has no government involvement in the economy
has some government involvement in the economy
Public goods are funded by
charitable donations collected by the government
profits made by private businesses
profits made by public companies
taxes collected by the government
