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

Competition and Free Enterprise — Unit test Answers

11 verified answers
1
Free Preview

Opportunity cost means that something needs to be

r
replenished.
g
given up.
i
ignored.
p
paid for.
2
Free Preview

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.
3

threefourfivesix

A
three
B
four
C
five
D
six
5

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.
6

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.
7

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.
8

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

A
closed economy.
B
command economy.
C
mixed market economy.
D
pure market economy.
9

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.

P
Private ownership provides offices for government workers.
P
Private ownership provides land or goods for all citizens to use.
P
Private ownership can make it possible for a business to earn money.
P
Private ownership might help a person move to another economic class.
P
Private ownership allows a person to own goods that may increase in value.
11

A pure market economy is sometimes called pure

a
a. command economy.
s
socialism.
c
communism.
c
capitalism.
13

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

T
They run shipping companies and other sources of distribution.
T
They own farms, factories, and other sources of production.
T
They regulate some aspects of production and distribution.
T
They employ most of the workers in the economic system.

Did you find these answers helpful?