Free Enterprise and Other Economic Systems 2

Question 1

This economist created the idea of Communism.

Accepted Answer

Karl Marx

Question 2

the first modern economist, whose book The Wealth of Nations describes a free market economy.

Accepted Answer

Adam Smith

Question 3

the process of selling businesses operated by the government to individual investors

Accepted Answer

Privitization

Question 4

the total value of all final goods and services produced in a country in a given year

Accepted Answer

GDP

Question 5

the basic facilities that are necessary for a society to function and grow

Accepted Answer

infrastructure

Question 6

the study of economic behavior and decision-making in a nation’s whole economy

Accepted Answer

macroeconomics

Question 7

Examples of the government as a regulator would include.

Accepted Answer

All of the above

Question 8

What is true about entrepreneurs in a free enterprise economy?

Accepted Answer

All of the above

Question 9

Which is known for offering many health and public services to everyone at little or no cost?

Accepted Answer

Command Economies

Question 10

a private group that tries to persuade public officials to act in ways that benefit its members

Accepted Answer

interest group

Question 11

the study of economic behavior and decision-making in small units, such as households and firms

Accepted Answer

microeconomics

Question 12

Which economic system encourages new ideas through competition and profit motives.

Accepted Answer

Free Enterprise Economies

Question 13

the income people receive in return for supplying factors of production

Accepted Answer

Factor payments

Question 14

Examples of the government a protector.

Accepted Answer

All of the above

Question 15

This country attempted to create a communist economy during the 20th century.

Accepted Answer

Soviet Union

Question 16

Why do markets exist?

Accepted Answer

to allow people to exchange goods and services

Question 17

one who is unwilling to pay for a certain good or service but who would get the benefits of it

Accepted Answer

free rider

Question 18

a period of macroeconomic expansion, or growth, followed by a period of contraction, or decline

Accepted Answer

business cycle

Question 19

Example of the government as a provider at the national level.

Accepted Answer

Supplies defense services

Question 20

the hope of reward or fear of penalty that encourages a person to behave in a certain way

Accepted Answer

Incentive

Question 21

What does consumer sovereignty mean?

Accepted Answer

The consumer is ruler of the market

Question 22

the study of economic behavior and decision-making in a nation’s whole economy

Accepted Answer

macroeconomics

Question 23

Most countries are this kind of economy.

Accepted Answer

Mixed Economy

Question 24

the right of a government to take private property for public use

Accepted Answer

eminent domain

Question 25

China’s economy is considered more mixed than North Korea’s because China

Accepted Answer

has freer markets.

Free Enterprise and Other Economic Systems 2

Questions 25

Free Enterprise and Other Economic Systems 2

Questions 25