Econ Chaoter 3

Question 1

Regulator

Answer 1

Role of national government in preserving marketplace competition

Question 2

Entrepreneur

Answer 2

Risk take ring individual in search of profits

Question 3

Mixed economy

Answer 3

Economic system with combination of command, traditional, and market economies

Question 4

Catalyst

Answer 4

Something that stimulates activity among forces or people

Question 5

Consumer

Answer 5

Ruler of the market in deterring goods and services produced

Question 6

The phrase the customer is always right is most often associated with that term?

Answer 6

Consumer sovereignty

Question 7

How does the government operate in a free enterprise economy?

Answer 7

It establishes laws and rules to maintain competition

Question 8

It is a role protector of the American free enterprise system, one of the issue the government must deal with is…?

Answer 8

Environmental hazards

Question 9

Who ultimately determines the success of a product?

Answer 9

Consumer

Question 10

Consumer can influence the production and sale of goods by..?

Answer 10

Voting with their dollars

Question 11

When Economy is capitalist and has free market it can be said that the economy is based on

Answer 11

Free enterprise

Question 12

One All the characteristics of the USA economy is a … role of the government

Answer 12

Limited

Question 13

Between 2009 and 2009 the us went through a difficult economic period

Answer 13

Great recession

Question 14

…. motives Is what drives people and organizations to improve their material will being

Answer 14

Profit

Question 15

Three synonyms terms to describe the US economic system are free enterprise capitalism and

Answer 15

Free market

Question 16

The Dollar value of all final goods and services structure produced in a country in a year is known as

Answer 16

Gross domestic product

Question 17

The struggle among sellers to attract consumers by offering the best products at the lowest prices known as

Answer 17

Competition

Question 18

What motivates people to work save and invest

Answer 18

Incentives

Question 19

What does people and businesses the opportunity to make your own decisions

Answer 19

Economic freedom

Question 20

an economic system in which private citizens own and use the factors of production to produce and generate profits

Answer 20

Capitalism

Question 21

an economic system in which privately owned businesses have the freedom to operate with limited government intervention.

Answer 21

Free enterprise

Question 22

5 important characteristics of a capitalistic free enterprise economy.

Answer 22

1 economic freedom ( to buy things you want to choose your occupation and your employer)
2 voluntary exchange ( the act of buyers and sellers freely exchange goods)
3 private property rights ( the right to one end control your own possession)
4 profit motive ( the incentive to improve one’s material well being)
5 competition ( the struggle among sellers to attract consumers)

Question 23

Benefits of Free Enterprise

Answer 23

1 individual freedom - choices
2 a variety of Goods - incredible variety stuff
3 adapting to change - prices ( increase in price of gas - adapting by producing more gas efficient automobiles)
4 promoting progress - (cell phone evolution great example)
5 creation of wealth: GDP ( gross domestic product) the dollar value of all goods and services in a country in a 12 month period - made the USA the 2nd largest economy

Question 24

Major disadvantage of a free enterprise

Answer 24

Uneven economic growth ( recessions and depressions)

Growing Gaps between Rich and Poor ( gilded age - 1900 - 56% poverty rate! Today 12% poverty rate)

Question 25

the dollar value of all final goods, services, and structures produced in one year in a country

Answer 25

GDP

Question 26

A person who organizes and manages the factors of production

Answer 26

Entrepreneurs

Question 27

Role of entrepreneurs

Answer 27

Spark plug and the catalyst of the free enterprise economy

Question 28

Role of high rate of consumer

Answer 28

They determine what to produce is to sovereign

Question 29

Role of government

Answer 29

Protect the People, provide services for the people, regulate business, consumer goods

Question 30

Minimum wage.

Answer 30

Lowest legal wage that can be paid to most workers

Question 31

Social security

Answer 31

Federal program of disability and retirement benefits that covers most working place

Question 32

Medicare

Answer 32

Federal health insurance program for senior citizens, regardless of income

Question 33

Medicaid

Answer 33

Federal health insurance program for lower income families

Question 34

Inflation

Answer 34

Rise in the general Lovell of prices

Question 35

Fixed income

Answer 35

Income that does not increase over time