Economics Review

A “free enterprise system” is where businesses decide what products to sell, the price, and where to sell them. Free enterprise is an example of which economic system?

• Command Economy

• Market Economy

• Barter Economy

What is it called where their is high demand for something but very low supply?

• Scarcity

• Surplus

• Inventory

As economies develop and become stronger...all of the following occur EXCEPT...

• Wages can increase

• Jobs are created

• Water and air pollution can decrease

In a free enterprise system, businesses are privately owned and run to...

• Make a profit

• Support the Government

• Create social changes

Producing goods to meet the needs of people (food, shelter, work, clothes) is the concern of all...

• Geographical Systems

• Economic Systems

• Cultural Systems

An economic system where the government tells people what jobs they will have and what prices they will pay is called a...

• Command Economy

• Market Economy

• Barter Economy

The U.S. free enterprise system encourages workers to...

• Drop out of school

• Retire early

• Work hard and make a profit

• Give all of their money to the government

Which is NOT a benefit of a Free Enterprise Economy?

• Guaranteed profits and success

• People can own property

• Freedom to start whatever business you would like

• Competition between businesses

Which of these is NOT a Factor of Production?

• Labor

• Scarcity

• Capital

• Land

If you visited a country that has a Command Economy what could you expect?

• Prices will be different all over because they are set by supply and demand.

• Prices will be the same everywhere because the Government has control over pricing.

• Prices will be negotiated and can be changed from what is listed.