Answers26-27 Ignite Economics-KY-EconomicsCompetition and Free Enterprise

Competition and Free Enterprise — Unit test Answers

15 verified answers
1
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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?

A
John is using available and renewable resources.
B
John is relying on inexpensive labor costs to improve profits.
C
John is using resources to produce both goods and services.
D
John is assuming consumers will have limited need for his product.
2
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most likely

t
the private business that operates the farm.
t
the government group that runs the farm.
t
the individual who manages the farm.
t
the family who owns the farm.
3

Which situation best reflects the concept of free enterprise?

A
Consumers have a choice between two bakeries in a single city block.
B
An agency determines which supplements are safe for people to buy.
C
Local officials set the prices for all the gas stations in a community.
D
The government decides the minimum wage for all airline workers.
4

A pure market economy is sometimes called pure

a
a. command economy.
s
socialism.
c
communism.
c
capitalism.
5

What is an example of goods?

A
a hotel room
B
a good haircut
C
a car wash
D
a hard cover book
7

What is one purpose of studying economics?

t
to understand the reasons why people purchase certain goods
t
to find reasons why some resources become scarce
t
to determine the principles that explain why consumers buy services
t
to examine principles that influence the production of goods and services
8

What type of labor force might a pottery factory want to focus on when hiring?

h
highly skilled
h
highly wealthy
h
highly educated
h
highly localized
9

Which of the following is influenced by personal economic choices? Choose four answers.the cost of your rent and utilitiesthe resources you have availablethe amount of money you spend on a bus passthe money you decide to spend on leisure productsthe amount of money you put into your savings accountthe manner in which you balance your time between work and leisure

A
the cost of your rent and utilities
B
the resources you have available
C
the amount of money you spend on a bus pass
D
the money you decide to spend on leisure products
E
the amount of money you put into your savings account
F
the manner in which you balance your time between work and leisure
10

Which of the following would be a producer?

A
someone owning a book store
B
someone shopping in a grocery store
C
someone putting gas in a car
D
someone waiting in line at a bank
12

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

m
makes no economic decisions.
m
makes some economic decisions.
m
makes most economic decisions.
m
makes all economic decisions.
13

Land is considered a resource because it

A
is always available to use.
B
is used to produce things.
C
costs little or nothing to use.
D
requires labor to be useful.
15

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

P
People will go without them.
P
People will look elsewhere for them.
P
People will stop wanting them.
P
People will focus on needs instead.

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