Free Enterprise and Government Policies

The money left after production costs are subtracted from revenue is called

• free rider

• profit

• subsidy

• scarcity

A person who chooses to, and is free to, open a grocery store is participating in a

• command economy

• centrally-planned economy

• free enterprise economy

• traditional economy

Most people are inspired to start a business by the

• free contract clause

• marginal benefit

• open opportunity clause

• profit motive

What is the role of producers?

• Make the product

• Buy the product

• to carry out a government economic program

• to increase the profit of other established retail stores

Which is an example of competition changing the marketplace?

• a chain bookseller forcing many individual booksellers to go out of business

• a chain hot dog restaurant failing to make a large profit

• a chain coffee shop having no effect on individual coffee shops

• a chain restaurant expanding its menu to include desserts

Free contract means that people can chose

• for themselves what legal agreements to enter into

• for themselves what positive externalities to support

• to enter and compete in the marketplace

• to enter into open opportunities

The incentive to improve material well-being by seeking to gain from economic activities is called

• legal equality

• marginal benefit

• open opportunity

• profit motive

Government restricts free enterprise through

• deregulation

• income redistribution

• public policy

• goods and services

In the marketplace, producers are looking to

• buy goods for personal use

• earn a profit

• find incentives

• find the latest fad

Open opportunity helps to ensure that everyone is free to

• be efficient

• invest in stocks

• start businesses

• maximize production