Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following...

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Chapter 3 Review Free Enterprise Economics

Transcript of Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following...

Page 1: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

Chapter 3 ReviewFree Enterprise

Economics

Page 2: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

1In a free enterprise economy,

how is the following question answered. What goods will be produced?

Producers produce what consumer want to buy.

Page 3: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

2How will goods be produced

in a free enterprise economy?By individuals who own and

manage businesses.

Page 4: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

3For whom will goods be

produced in a free enterprise economy?

The consumers who are willing to buy them.

Page 5: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

4Under the right of ______ the

government can take ownership of land without the consent of the owner.

Eminent domain

Page 6: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

5How does competition

among producers benefit consumers?

Lower pricesBetter variety of productsProduct improvements

Page 7: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

6List an economic incentive

the federal government offers to citizens?

Tax breaks for home ownership, student loans

Page 8: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

7The amount of money left

over after all the costs of production have been paid.

Profit

Page 9: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

8The amount of money by

which total costs exceeds total revenue.

Loss

Page 10: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

9Any good that is owned by

an individual or business. Private property

Page 11: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

10The principles of conduct,

such as right and wrong, morality, and immorality, good and bad.

Ethics

Page 12: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

11List an argument for why free

enterprise is an ethical economic system.

People can chooseVariety of productsRewards depend on performanceFreedoms

Page 13: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

12List a reason against the free

enterprise economic system.Income inequalityToo much power to large

corporations

Page 14: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

13A person who has a special talent

for searching out and taking advantage of new business opportunities, as well as developing new products and new ways of doing things.

Entrepreneur

Page 15: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

14An agreement between two

or more people to do something.

Contract

Page 16: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

15A public good that individuals

can be physically prohibited from consuming.

Excludable public good

Page 17: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

16Give an example of a

nonexcludable public good.National defense

Page 18: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

17A person who receives the

benefits of a good without paying for it.

Free rider

Page 19: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

18An adverse side effect of an

act that is felt by others.Negative externality.

Page 20: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

19Any good that is owned by

the government.Public property

Page 21: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

20Give an example of a

negative externality. Neighbors who fail to maintain

their propertyLoud music Pollution

Page 22: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

21A beneficial side effect of an

action that is felt by others. Positive externality.

Page 23: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

22The price of a good times the

number of units of the good sold equals________.

Total revenue

Page 24: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

23Give an example of an

excludable public good. Lecture at a college – if you

aren’t accepted or don’t pay tuition

Page 25: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

24A(n) _______ is something

that encourages or motivates a person toward an action.

Incentive

Page 26: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

25A public good that individuals

cannot be physical prohibited from consuming.

nonexcludable public good

Page 27: Chapter 3 Review Free Enterprise Economics. 1 In a free enterprise economy, how is the following question answered. What goods will be produced? Producers.

Final Question

List 5 important features of free enterprise.

Private propertyChoiceVoluntary exchangeCompetitionEconomic incentives