Competition and Free Enterprise — Unit test Answers

Opportunity cost means that something needs to be

John has a large apple orchard. He has decided to bake pies and sell them at the local farmer’s market. Which best describes John’s use of economics?

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What are the basic types of resources used by producers? Choose three answers.capitallaborvaluescarcityland

In the free-enterprise system of the United States, the government

What might happen if an economy is unable to produce wanted goods and services?

Land is considered a resource because it

The government has the right to own all land, buildings, and factories in a

What are some benefits to private ownership? Select three answers.Private ownership provides offices for government workers.Private ownership provides land or goods for all citizens to use.Private ownership can make it possible for a business to earn money.Private ownership might help a person move to another economic class.Private ownership allows a person to own goods that may increase in value.

A pure market economy is sometimes called pure

What role do government agencies play in a mixed market economy?

In a republic, elected officials create laws to regulate the economy.

What are some ways to address unemployment in a market economy? Select three answers.creating new projectsincreasing regulationlowering restrictionsraising more taxespromoting hiring

In a competitive market, an electronics company releases a smartphone that is much faster than older models. This is an example of

Which of the following statements about opportunity cost are true?CHECK ALL THAT APPLY.It exists because resources are scarce.It influences consumers.It influences producers.It assists in anticipating profits.It encourages people to spread their resources around.

"Everyone’s rights should be protected" is an argument

What are the cons of a mixed market economy for most citizens? Select four answers.There may be a sizable gap between rich and poor people.It can be very difficult for citizens to start private businesses.Citizens must pay for most basic necessities by themselves.There is no guarantee of steady employment for many citizens.Citizens may pay higher taxes than in other economic systems.Citizens often purchase their own health care and higher education.

Which situation best reflects the concept of free enterprise?

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The factors of production attempt to instill the idea that resources are