4 Written Questions

1. -Private ownership of property and resources (The government interferes as little as possible) Profit: Decisions are made to make the largest profit Competition: Improved products and lower prices Consumer Sovereignty: Businesses will make and sell what customers want and are willing to buy Individual choice: More freedom
2. -Individuals and businesses as decision makers for the private sector Government as decision maker for the public sector Greater government role than a free market economy Most common economic system today
3. Private Property: Individuals and businesses have the right to own personal property as well as the means of production without undue interference from the government
4. Competition: Rivalry between producers/sellers of a good or service results in better quality goods at a lower price

4 Multiple Choice Questions

1. Profit: Profit consists of earnings after all expenses have been paid
   1. Characteristic #1
   2. Characteristic #3
   3. Characteristic #4
   4. Characteristic #2
2. Consumer Sovereignty: Consumers determine through purchases what goods and services will be produced
   1. Characteristic #4
   2. Characteristic #2
   3. Characteristic #5
   4. Characteristic #3
3. -Central (government) ownership of property and resources (total) Centrally planned economy (The government determines what gets produced, wages, and prices) Lack of consumer choice
   1. Mixed Economy
   2. Partnership
   3. Command Economy
   4. Corporation
4. -Has just ONE owner ~The owner takes all the risks and gets all the profit. The owner is personally reliable for any debts the business has
   1. Free Market
   2. Proprietorship
   3. Corporation
   4. Partnership

3 True/False Questions

1. Characteristic #1 → Free Markets: Markets are allowed to operate without undue interference from the government

   True        False

2. Corporation → -Has TWO OR MORE owners ~The partners share all the risks and share the profit. Each partner is personally liable for any debts the business has

   True        False

3. Partnership → -Has just ONE owner ~The owner takes all the risks and gets all the profit. The owner is personally reliable for any debts the business has

   True        False