A Fun Quiz On The Importance Of Free Enterprise
We heartily welcome you to this quiz on the importance of free enterprise! A free enterprise is an economic system in which businesses operate without governmental intervention. You will surely love the quiz if you're an economics student. Please make sure to read all the questions very carefully before answering. You can even take this quiz for better preparation for your examinations. So, make sure to attempt the questions well. There's no time limit on the quiz, so feel free to try it as many times as you want! Keep learning and have fun! Good Luck!
Questions and Answers
- 1.
The study of businesses in small parts is called what?
- A.
Politics
- B.
Macroeconomics
- C.
Microeconomics
- D.
Business studies
Correct Answer
C. MicroeconomicsExplanation
Microeconomics is the study of individual economic units such as households, firms, and industries. It focuses on analyzing the behavior of these units and the interactions between them in order to understand how they make decisions regarding resource allocation, production, and consumption. By studying businesses in small parts, microeconomics provides insights into the specific factors that influence their operations and performance. This knowledge is valuable for understanding the functioning of the overall economy and for making informed decisions in the business world.Rate this question:
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- 2.
Which of the following is NOT an example of public good?
- A.
A shopping mall
- B.
A public park
- C.
A national park
- D.
None of the above
Correct Answer
A. A shopping mallExplanation
A shopping mall is not an example of a public good because it is a privately owned and operated facility that charges admission or fees for its services. Public goods, on the other hand, are non-excludable and non-rivalrous, meaning that they are available to all individuals without charge and one person's use does not diminish its availability to others. Public parks and national parks, for instance, are funded by the government and open to the public without any cost, making them examples of public goods.Rate this question:
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- 3.
Which of the following is one of the best ways to measure the economic well being of a country?
- A.
Fiscal policy
- B.
GDP
- C.
Stock market
- D.
Total net worth
Correct Answer
B. GDPExplanation
GDP, or Gross Domestic Product, is one of the best ways to measure the economic well-being of a country. It is a comprehensive measure of the total value of all goods and services produced within a country's borders over a specific period of time. GDP takes into account consumption, investment, government spending, and net exports, providing a broad picture of the overall economic activity and productivity of a country. By analyzing GDP, policymakers, economists, and investors can assess the health and growth of an economy, make informed decisions, and compare economic performance across different countries.Rate this question:
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- 4.
An exclusive right to an invention or a brand-new product is called what?
- A.
Distribution rights
- B.
Copyrights
- C.
Incentive
- D.
Patent
Correct Answer
D. PatentExplanation
A patent is the correct answer because it refers to the exclusive right granted to an inventor or a company for a new invention or product. This legal protection allows the patent holder to control the production, use, and distribution of their invention, preventing others from making, selling, or using it without permission. Copyrights, on the other hand, protect original works of authorship such as books, music, or art. Distribution rights refer to the rights to distribute or sell a product, and an incentive is a motivating factor or reward.Rate this question:
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- 5.
How does the new technology affect the economy?
- A.
It makes the economy weaker
- B.
It decreases the number of jobs in the market
- C.
It makes the economy more efficient and strong
- D.
It has no effect in the economy
Correct Answer
C. It makes the economy more efficient and strongExplanation
The new technology makes the economy more efficient and strong because it allows for increased productivity and innovation. With the introduction of new technology, businesses are able to streamline processes, automate tasks, and improve overall efficiency. This leads to increased output and economic growth. Additionally, new technology often creates new industries and job opportunities, offsetting any potential job losses. Therefore, the overall impact of new technology on the economy is positive, making it more efficient and strong.Rate this question:
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- 6.
Which of the following is an example of a prolonged period of growth or decline in the economic market that has a direct impact on people's finances?
- A.
GDP
- B.
Business cycle
- C.
Recession
- D.
Inflation
Correct Answer
B. Business cycleExplanation
A business cycle refers to the fluctuations in economic activity over a period of time. It is characterized by alternating periods of economic growth and decline, which directly impact people's finances. During periods of growth, people may experience increased employment opportunities, higher incomes, and improved financial well-being. On the other hand, during periods of decline or recession, people may face job losses, reduced incomes, and financial hardships. Therefore, the business cycle is an example of a prolonged period of growth or decline in the economic market that has a direct impact on people's finances.Rate this question:
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- 7.
The rivalry between two companies to get more customers is called what?
- A.
Business competition
- B.
Incentives
- C.
Inflation
- D.
Voluntary exchange
Correct Answer
A. Business competitionExplanation
The term "business competition" refers to the rivalry or contest between two companies to attract and retain customers. It involves various strategies and tactics employed by companies to gain a competitive edge in the market and increase their customer base. This can include offering better products or services, competitive pricing, marketing campaigns, and innovation. Ultimately, the goal of business competition is to outperform and outdo competitors in order to gain a larger share of the market and attract more customers.Rate this question:
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- 8.
The person who doesn't pay for the use of certain goods or services but benefits directly from them?
- A.
Custoner
- B.
Free rider
- C.
Equal rider
- D.
None of the above
Correct Answer
B. Free riderExplanation
A free rider is someone who benefits from certain goods or services without paying for them. In this context, the person mentioned in the question does not pay for the use of certain goods or services but still directly benefits from them, making them a free rider.Rate this question:
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- 9.
What tracks the prices of goods and services in the economy, while providing the government with information about inflation?
- A.
Consumer Price Index
- B.
GDP
- C.
Price Comparison Chart
- D.
None of the above
Correct Answer
A. Consumer Price IndexExplanation
The Consumer Price Index (CPI) is a measure that tracks the prices of goods and services in the economy. It provides the government with information about inflation by calculating the average change in prices over time. The CPI is used to monitor price levels, assess changes in the cost of living, and adjust policies accordingly. GDP (Gross Domestic Product) is a measure of the total value of goods and services produced in an economy, while a Price Comparison Chart is not a specific tool or measure used for tracking prices or inflation.Rate this question:
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- 10.
How does government protect the new product or invention from being duplicated?
- A.
Entrepreneurship
- B.
Copyright
- C.
Public Disclosure Law
- D.
Patent
Correct Answer
D. PatentExplanation
The government protects new products or inventions from being duplicated through the use of patents. A patent is a legal document that grants exclusive rights to the inventor, preventing others from making, using, or selling the invention without permission. This protection encourages innovation and allows inventors to profit from their creations. Copyright protects original works of authorship, while public disclosure laws regulate the disclosure of information. However, patents specifically address the protection of new products or inventions.Rate this question:
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Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Aug 16, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 11, 2022Quiz Created by
Tanya Mishra
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