AnswersEconomics and Personal FinanceThe Principles and Practice of Free Market Capitalism

The Principles and Practice of Free Market Capitalism — Quiz Answers

10 verified answers
1
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How does the market play an essential role in free market capitalism? Select two options.

A
It helps determine the price of products.
B
It helps people trade worldwide.
C
It helps sellers to move to new markets to sell their products.
D
It helps sellers sell their products in one place.
E
It helps buyers buy one product for a lifetime.
2
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Which is an example of capital in the factors of production?

A
The tractor was used to plow fields.
B
The farmers working on the farm.
C
The crop was grown on a farm.
D
The money earned after selling the crops.
3

Which is an example of raw materials in the factors of production?

A
The manufacturers who work in the factory.
B
The phone manufactured by the phone manufacturer.
C
The metals and recyclable plastic.
D
The factory where phones are manufactured.
4

What factors may influence price fluctuations in a free market economy? Select three options.

A
Patents
B
Asset depreciation
C
Economic conditions
D
Supply
E
Property rights
F
Asset appreciation
G
Demand
5

How do banks help businesses to grow?

A
They take away the owner's right to own the business.
B
They withhold profits for businesses to expand.
C
They preside over significant business decisions.
D
They provide loans to businesses to expand.
6

How do prices influence choices?

A
People choose which item should be available in the neighborhood.
B
People learn more about product brands.
C
People pay more taxes.
D
People decide what and when to buy products.
7

Examples of raw materials and labor include

A
wool.
B
knitters.
C
needles.
D
yarn.
E
weavers.
F
frames.
8

Who owns the factors of production in a free market economy?

A
The business owners
B
The bank
C
The stockholders
D
The labor
9

Examples of raw materials and labor include

A
wool.
B
weavers.
C
yarn.
D
knitters.
E
frames.
F
needles.
10

Which is an example of raw materials in the factors of production?

A
The phone manufactured by the phone manufacturer.
B
The metals and recyclable plastic.
C
The manufacturers who work in the factory.
D
The factory where phones are manufactured.

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