Basic Terms
What is the name for an economic system where businesses compete freely?
What is a market economy?
What happens to price when demand goes up and supply stays the same?
What is price increases?
Who is known as the "father of capitalism"?
Who is Adam Smith?
What is a well-known fast food chain that operates in a market economy?
What is McDonald’s?
Who controls prices in a pure market economy?
What are supply and demand?
What do we call a person who starts their own business?
What do we call a person who starts their own business?
What happens to price when supply goes up and demand stays the same?
What is price decreases?
What famous book did Adam Smith write?
What is The Wealth of Nations?
In a market economy, who decides what products a business should make?
Who are consumers?
What role does the government play in a market economy?
What is a limited role – enforce rules, protect rights?
What is the money earned from selling goods or services?
What is profit?
What is the point where supply and demand meet?
What is equilibrium?
This economist believed in free markets and limited government.
Who is Milton Friedman?
What company is known for its iPhones and competes in a free market?
What is Apple?
What kind of economy does the U.S. have?
What is a mixed economy?
What are the resources used to produce goods and services?
What are factors of production?
What term describes too much of a product in the market?
What is surplus?
Who believed government should play a bigger role in managing the economy during tough times?
Who is John Maynard Keynes?
Give one example of competition in a market economy.
What is Pepsi vs. Coca-Cola?
What is it called when the government sets a minimum wage?
What is a price floor?
What do we call the desire for a product combined with the ability to pay for it?
What is demand?
What term means not enough of a product to meet demand?
What is shortage?
Which economist came up with the idea of the "invisible hand"?
Who is Adam Smith?
In a market economy, what happens if a business sets prices too high?
What is consumers buy from competitors, and sales go down?
What’s one reason governments might regulate businesses in a market economy?
What is to protect consumers, ensure fairness, or reduce pollution?