Chapter 3 Lesson 1-3

When an economy is a capitalist and has free markets, it can be said that the economy is based on __

free enterprise

one of the characteristics of the U.S economy is the _ role of the government

limited

between 2007 and 2009, the U.S went through a difficult economic period called the __

Great Recession

_ motive is that drives people and organizations to improve their material well-being.

Profit

_ rights allow people to own and control their possessions as they see fit, as long as it does not interfere with the rights of others

Private Property

The three synonymous terms to describe the U.S economic system are free enterprise, capitalism, and _

free market

The dollar value of all final goods, services, and structures produced in a country in a year is known as

gross domestic product

The struggle among sellers to attract consumers by offering the best products at the lowest prices is known as

competition

What motivates people to work, save, and invest

incentives

What gives people and businesses the opportunity to make their own decisions?

economic freedom

a risk- taking individual in search of profits

entrepreneur

Ruler of the market in determining goods and services produced

consumer

economic system with combination of command, traditional, and market economies

mixed economy

role of national government in preserving marketplace competition

regulator

something that stimulates activity among forces or people

catalyst

The phrase "the customer is always right" is most often associated with what term?

consumer sovereignty

How does the government operate in a free enterprise economy?

It establishes laws and rules to maintain competition

In its role as protector of the American free enterprise system, one of the issues the government must deal with is

environmental hazards

Who ultimately determines the success of a product?

the consumer

Consumers can influence the production and sale of goods by

"voting" with their dollars.

Which statement describes why the people in nation with a command economy might resist a shift to a free market economy

people who hold political power are threatened by fundamental changes.

the minimum wage was estab. at national and state levels as the lowest legal wage that can be paid to the majority of the workers

True

U.S economic and social goals are likely to remain unchanged in the future

false

social security is one example of how Americans have modified their free enterprise economy

True

In general, people do not want their economic system to create as many jobs as possible

false

Economic growth is necessary as a nation's population increases.

True

What is the name of the federal health insurance program for senior citizens?

medicare

Inflation cause people to

Work more to pay for basic necessities

Which of the following is currently considered one the the seven major economic and social goals in the United States?

Price stability

What is one of the benefits related to economic equity?

receiving equal pay for equal work

Protection from layoffs, illnesses, injuries or disabilities falls under the goal of

economic security