Lesson 24 pg. 72 - 74

Question 1

In a free society, who makes the economic decisions?

Answer 1

In a free society, economic decisions are made by individuals, separate people functioning in their roles as producers and consumers, and not by an impersonal force that attempts to decide what is the overall best for people.

Question 2

How do individuals determine what is supplied and demanded in a free market?

Answer 2

Individuals determine what is supplied and demanded by sending market signals, or signs that are used by consumers and producers to determine how much of a good to buy or sell at a given price and time.

Question 3

Define nondurable goods

Answer 3

nondurable goods - goods that have a life expectancy of less than three years

Question 4

Define durable goods

Answer 4

durable goods - goods which are expected to last at least three years

Question 5

What kind of influence do the consumers have on demanding goods?

Answer 5

In a free market economy, it is the consumers–you and everybody else who demands goods–who determine what goods are to be produced and in what quantity.