American Free Enterprise

10 Questions

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US Government Quizzes & Trivia

In this quiz we’ll be talking all about American Free Enterprise and putting you to the test by offering a number of definitions which you will have to assign a word to. All that and more await you, but do you have what it takes to answer all questions correctly? Let’s find out.


Questions and Answers
  • 1. 
    Match the following
    • A. The government's right to take private property for public use
    • A.
    • B. The toal value of all final goods and services produced in a country in a given year
    • B.
    • C. A situation in which the free market does not distribute resources efficiently
    • C.
    • D. An economic side effect of the production of a good or servce
    • D.
    • E. The principle that people may decide what agreements they want to enter into
    • E.
  • 2. 
    What is the profit motive?
    • A. 

      Exchange of goods

    • B. 

      Money that a business makes

    • C. 

      Opportunity for success

    • D. 

      Incentive to make money

  • 3. 
    What is considered a negative effect of government regulation?
    • A. 

      It protects businesses but harms the environment

    • B. 

      It does not protect the well being of the public

    • C. 

      It allows businesses to sell unsafe products

    • D. 

      It can be expensive for businesses to follow all regulations

  • 4. 
    You get a spirit day because your house donated 2000 toys, even though you didn't donate anything. What is this know as?
    • A. 

      Free rider problem

    • B. 

      In-kind benefit

    • C. 

      Negative externality

    • D. 

      Market failure

  • 5. 
    Which of the following is a public good?
    • A. 

      Providence's school lunch

    • B. 

      Community Park

    • C. 

      Your driveway

    • D. 

      A bank

  • 6. 
    An economists who focuses on microeconomics might study which of the following?
    • A. 

      Inflation

    • B. 

      Household credit card debt

    • C. 

      Gross Domestic Product

    • D. 

      Unemplyment

  • 7. 
    Economists believe a healthy economy has unemployment between ___% and ____%
  • 8. 
    A patent will protect someone's creation for ______ years.
  • 9. 
    Subsidized housing is an example of a(n) _____________ benefit.
  • 10. 
    Consumers can influence economic policy by forming a(n) ____________________________.