Foundations of the US Economic System

What is the term for an economic system where transactions are free from government intervention?

• Laissez-faire capitalism

• Communism

• Socialism

• None of the above

Who is known for the concept of the 'invisible hand' in economics?

• Adam Smith

• George Washington

• Bobby

• Alexander Hamilton

What is the main idea behind Adam Smith's 'invisible hand' concept?

• Competition should be eliminated.

• Businesses should focus on helping others to succeed.

• Individuals pursuing their own interests unintentionally benefit society.

• Government should control all businesses.

What is the term for an economic system where private businesses compete with minimal government regulation?

• Socialism

• Free enterprise

• Communism

• Monopoly

In the example of Bobby and Susie's lemonade stands, why does Susie have an advantage?

• She sells lemonade at a higher price.

• She has lower costs for her lemonade.

• She has more customers.

• She has better marketing.

What is a monopoly?

• A market with no competition.

• A single company dominating the market, excluding others.

• A market with many small competitors.

• A group of companies working together to dominate the market.

What is the Sherman Antitrust Act of 1890 primarily concerned with?

• Regulating international trade.

• Promoting monopolies.

• Encouraging government control of businesses.

• Preventing monopolies.

What is an oligopoly?

• A single company dominating the market.

• A market with many small competitors.

• A market with no competition.

• A group of companies working together to dominate the market.

Why are monopolies generally not allowed in the U.S.?

• They are supported by the government.

• They are beneficial for small businesses.

• They encourage competition.

• They lead to higher prices and less innovation.

What is the main difference between a monopoly and an oligopoly?

• A monopoly is beneficial for consumers, while an oligopoly is not.

• A monopoly has many competitors, while an oligopoly has none.

• A monopoly is legal, while an oligopoly is not.

• A monopoly involves one company, while an oligopoly involves a group of companies.