Civics SOL Review CE.12

The economy of the United States is primarily a free market economy, but is characterized as a ____ economy.

• command

• free market

• traditional

• mixed

A market exists whenever buyers and sellers...

• buy goods and services.

• sell goods and services.

• exchange goods and services.

Which characteristic of the United States economy allows markets to operate without undue interference from the government? (Prices are determined by supply an demand as buyers and sellers interact in the marketplace.)

• free enterprise

• private property

• profit motive

• competition

• consumer sovereignty

Which characteristic of the United States economy allows individuals and business to own real and personal property as well as the means of production without undue interference from the government? (The government provides a structure to define and enforce property rights.)

• free enterprise

• private property

• profit motive

• competition

• consumer sovereignty

Which characteristic of the United States economy allows individuals to have the opportunity to create businesses and earn profits?

• free enterprise

• private property

• profit motive

• competition

• consumer sovereignty

Which characteristic of the United States economy allows rivalry between producers and/or sellers of a good or service, usually resulting in better-quality goods and services at lower prices?

• free enterprise

• private property

• profit motive

• competition

• consumer sovereignty

Which characteristic of the United States economy allows consumers to determine, through their purchases, which goods and services will be produced?

• free enterprise

• private property

• profit motive

• competition

• consumer sovereignty

Government involvement in the United States economy is limited. Most decisions regarding the production of goods and services are made in the ____ sector.

• private

• public

• both private and public.

____ is determined by the interaction of supply and demand. It is the amount of money exchanged for a good or service.

• demand

• supply

• price

• competition

____ is the amount of a good or service that consumers are willing and able to buy at different prices during a given time period.

• supply

• demand

• price

• competition