Week 4 Free Market Economy

Economic freedom can include the ability to chose what to buy and the ability to work at the profession of your choice.

• True

• false

A market is the concentration of the productive efforts of individuals on a limited number of activities.

• false

• True

A trade off is the act of giving up one benefit in order to gain another great benefit.

• True

• False

Trade offs only involve things that can be measured such as time and money.

• true

• false

The least desirable alternative somebody gives up as a result of a decision is the opportunity cost.

• true

• false

A market is any arrangement that allows buyers and sellers to exchange things.

• true

• false

Specialization is the concentration of the productive efforts of businesses and individuals on a limited number of activities.

• true

• false

Profits are the rewards entrepreneurs receive for taking a risk of starting a business.

• true

• false

A traditional economy relies on innovation and new technology.

• true

• false

In a free market economy answers to the 3 basic questions are made by voluntary exchange in markets.

• true

• false