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11th -
12thgrade
Economics - Chapter 3 Quiz "American Free Enterprise"
30 questions
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- 1. Multiple ChoiceAn economic system in which businesses compete against one another free of government controlSocialismFree Enterprise CapitalismProductMarketing
- 2. Multiple ChoiceWhich group lists the key principles of the free enterprise system?private property, taxation, public interest, patriotismprofit motive, legal equality, consumer protection, public interestprofit motive, private property, eminent domain, voluntary exchangeprofit motive, private property, competition, voluntary exchange, economic freedom
- 3. Multiple ChoiceWhat is considered a negative effect of government regulation?It protects consumers but harms the environment.It is expensive for businesses to follow all of the rules.It allows businesses to sell unsafe products.It does not protect the well-being of the public.
- 4. Multiple ChoicePattern of economic growth and decline.stock marketbusiness cycleebb and flow modelroller coaster
- 5. Multiple ChoiceAn economist who focuses on microeconomics might study which of the following?inflationhousehold budgetsnational income averagesunemployment
- 6. Multiple ChoiceWhich are the government's economic and social goals for promoting economic strength?steady growth, high prices, and innovation, shortagesfull employment, economic growth, stability, efficiency, security equity and freedomhigh employment, increased spending, low taxeslow unemployment, low prices, and low taxes
- 7. Multiple ChoiceWhat is one way the government might try to promote economic growth?raise taxesincrease spendingreduce pricesproduce more goods
- 8. Multiple ChoiceSomeone who benefits without paying for a good or service.free loaderfree riderfreedom fighterfree fallin'
- 9. Multiple ChoiceThe free market cannot provide for a nation's defense - this is an example of _________.Market OperationsMarket FailureMarket SuccessMarket Garden
- 10. Multiple ChoiceWhy are public goods examples of market failure?They show that the free enterprise system does not work.They show that competition in the free market is dangerous.They show that the free market cannot distribute certain resources efficiently.They show that the private sector is more efficient.
- 11. Multiple ChoiceHow 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 dIncrease the speed limit.Build noise barriers nearby.Limit the number of vehicles.Charge higher tolls.
- 12. Multiple ChoiceWhat is one way the government encourages people to give to charity?by redistributing taxesby subsidizing donationsby lowering taxes for people who donate (tax write-offs)through cash grants
- 13. Multiple ChoiceAt which point on the business cycle would the economy start to see inflation start to increase?Expansion below the trend line.Contraction above the trend line.Expansion above the trend line.At the Peak.
- 14. Multiple ChoiceWhat percentage range is considered to be "full employment" in a nation's economy?2-4% unemployment4-6% unemployment6-8% unemployment0% unemployment
- 15. Multiple ChoiceIn the United States, you may_______________.start your own business to meet a needdecide what fees to charge for a service or productown and run any business as long as the laws are obeyedall of the answers are correct
- 16. Multiple ChoiceA business firm must constantly try to provide the________services and create the best products at the________possible prices.least - lowestbest- highestbest –lowestleast - highest
- 17. Multiple ChoiceHow consumers choose to spend their money causes business firms of all kinds to________have their goods made in foreign countries.produce only what the business wants to produce.produce certain goods and services and not others.produce as many kinds of goods and services as possible.
- 18. Multiple ChoiceIn the American Free Enterprise System, you have the right to buy or sell private property.TrueI do not believe that people should own property, or have the right to buy or sell it.False
- 19. Multiple ChoiceIn the American Free Enterprise System, a business should keep ______down to increase income.innovationsalescostsproduction
- 20. Multiple ChoiceAdvances in technology are generated by_______________.major corporationspeople's needscorporate advertisingother countries
- 21. Multiple ChoiceAny form of wealth such as cash, stock, buildings, machinery, and land are all forms of capital.FalseTrue
- 22. Multiple ChoiceTime is an increasingly important___________.resourcedevelopmentmedical developmentpart of the industrial complex
- 23. Multiple ChoiceEveryone in today's technological world uses____________telecommutingcell phonesfinancial resourcesinformation
- 24. Multiple ChoiceData processing is the act of turning data into useful_________informationpartsgame strategypolitical views
- 25. Multiple ChoiceWhat is one way the government encourages people to give to charity?by redistributing taxesby subsidizing donationsby lowering taxes for people who donate (tax write-offs)through cash grants
- 26. Multiple ChoiceWhy are public goods examples of market failure?They show that the free enterprise system does not work.They show that competition in the free market is dangerous.They show that the free market cannot distribute certain resources efficiently.They show that the private sector is more efficient.
- 27. Multiple ChoiceRivalry between sellers is best known asProfit motiveCompetitionFreedom to chooseConsumer sovereignty
- 28. Multiple ChoiceThe goal of every business is motivated byrevenueprofitcompetitionfreedom
- 29. Multiple ChoiceThe fact that buyers determine whether any business succeeds or fails is calledProfit motiveCompetitionConsumer sovereigntyFreedom to choose
- 30. Multiple ChoiceA key factor in the American Free Enterprise System is that individuals, families, or groups have the right toprivate propertyfreedom to choose their own businesscompeteprofit motive
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