Chapter 3 Test Short Answers Flashcards
(10 cards)
The three synonymous terms to describe the US 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 in known as____
Competition
What motivates ppl to work, save and invest
Incentives
What gives ppl and businesses the opportunity to make their own decisions
Free enterprise
The phrase “The consumer 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
