Free Enterprise Basics
What is another name for capitalism?
What is a free enterprise system?
Why does the government intervene in a free enterprise system?
What is to provide public goods and address externalities?
What is the primary role of consumers in a free market?
What is influencing production through purchasing goods and services?
A consequence of economic activity that affects a third party, such as pollution from a factory.
What is a negative externality?
What is a public good that is provided to improve transportation and reduce congestion?
What are roads and highways?
Which of the following is a key feature of a free enterprise system?
What is open opportunity?
The government may do this on Nutrition Labels or show videos to present issues (Sweet Child of Mineeeeeeee)
What is public service announcement?
These individuals influence the economy by choosing what products to buy.
Who are consumers?
A positive impact that benefits someone who did not directly pay for it, such as improved education or public parks.
What is a positive externality?
This is a public good that provides students with a place to be 8 hours a day.
Public Schools/Education
In a free enterprise system, what role do producers play?
What is seeking profit and moving resources efficiently?
What is an example of a negative externality?
(What is pollution from a factory affecting nearby residents?
These businesses create goods and services to sell for profit.
Who are producers?
The type of economy that combines both market-based and government-controlled elements.
What is a mixed economy?
This public good provides older U.S citizens a pension when they are older.
What is Social Security?
How do producers determine what to produce in a free enterprise system?
What is through consumer demand and profit motives?
What is the primary reason governments provide public goods?
What is to ensure access to essential services that markets may not efficiently provide?
The interaction between these two market forces determines prices.
What are supply and demand?
A situation where there is no incentive for people to pay for a public good, leading to underproduction.
What is the free rider problem?
This public good keeps the lights on.
What is electricity?