WISE Test VA (part 1)- Test Questions
with Solutions
Market economy Correct Ans-Economic system that is regulated by the interactions between
producers and consumers in a market
Supply Correct Ans-How much of something producers are making available
Demand Correct Ans-Is how much of that thing a consumer wants
Planned economy Correct Ans-System in which government controls the prices of
commodities
Mixed Correct Ans-A system in which government is involved in regulating the economy in
some ways, but not as fully as planned
Traditional Correct Ans-Production activities are done as needed in order to satisfy a specific
demand
Capitalism Correct Ans-System in which private individuals can own businesses and goods
and in which production consumers and prices are determined mostly by competition in a free
market
, Capital money Correct Ans-goods that are worth money
Enterprise Correct Ans-Business
Profit motive Correct Ans-A business that exists in order to make a profit
Motive Correct Ans-Reason for doing something
Competition Correct Ans-Helps keep prices fair forces existing companies to keep finding
ways to be more efficient
Entrepreneur Correct Ans-Person who starts a small business
Government regulation Correct Ans-U.S is not a pure market economy, it's mixed designed
to promote competition, prevent companies from taking unfair advantage of consumers
Unregulated Correct Ans-Companies might lie
Monopoly Correct Ans-When one company controls an entire area of goods or services,
consumers don't have a choice (illegal)
Direct Competitors Correct Ans-Companies that offer basically the same product
with Solutions
Market economy Correct Ans-Economic system that is regulated by the interactions between
producers and consumers in a market
Supply Correct Ans-How much of something producers are making available
Demand Correct Ans-Is how much of that thing a consumer wants
Planned economy Correct Ans-System in which government controls the prices of
commodities
Mixed Correct Ans-A system in which government is involved in regulating the economy in
some ways, but not as fully as planned
Traditional Correct Ans-Production activities are done as needed in order to satisfy a specific
demand
Capitalism Correct Ans-System in which private individuals can own businesses and goods
and in which production consumers and prices are determined mostly by competition in a free
market
, Capital money Correct Ans-goods that are worth money
Enterprise Correct Ans-Business
Profit motive Correct Ans-A business that exists in order to make a profit
Motive Correct Ans-Reason for doing something
Competition Correct Ans-Helps keep prices fair forces existing companies to keep finding
ways to be more efficient
Entrepreneur Correct Ans-Person who starts a small business
Government regulation Correct Ans-U.S is not a pure market economy, it's mixed designed
to promote competition, prevent companies from taking unfair advantage of consumers
Unregulated Correct Ans-Companies might lie
Monopoly Correct Ans-When one company controls an entire area of goods or services,
consumers don't have a choice (illegal)
Direct Competitors Correct Ans-Companies that offer basically the same product
