Economics unit 2

The Takings Clause allows the government to practice eminent domain, or the taking away of property if the government ___.

• asks permission first

• takes only property belonging to former felons

• obeys environmental laws

• provides fair payment for the property

• gets an order from the Supreme Court

What is a startup?

• the first exercise of a consumer’s constitutional rights

• a new member of a President’s Cabinet within the Department of the Treasury

• the first stage of a lawsuit against potential monopolies

• a new business created by an entrepreneur

• the first step of government action in taking private property

The key to the market economy is that basic economic decisions are ultimately made by ___.

• the President’s director of economic affairs

• consumers

• the government

• the companies

• those in the United States making over $1 million a year

When one company can offer a product at a lower price than other companies due to some advantage, it is said that it can create a ___.

• natural monopoly

• legal monopoly

• cartel

• business-created monopoly

• scenario of perfect competition

A free market economy allows citizens to control the _______ of production.

• factors

• results

• taxation

• government

If there are no private property rights, people have no ________ to invest or work.

• penalty

• excuse

• evidence

• incentive

The absence of any competition within a particular market of a good or service is a(n) ___________.

• oligopoly

• enterprise

• monopoly

• closed market

“…nor shall ________ property be taken for public use, without just compensation.”

• wealthy

• religious

• industrial

• private

What was the significance of the Supreme Court case Kelo v. New London (2005)?

• It gave citizens the right to sue the government to prevent eminent domain.

• It gave the government more power in practicing eminent domain.

• It outlawed the practice of eminent domain.

• It limited the rights of government to practice eminent domain.

A(n) _______ occurs when there are few competitors and high barriers to entry within an industry.

• syndicate

• oligopoly

• cartel

• black market