Download Chapter 3: Elements of Free Enterprise Quiz Study Guide

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Chapter 3: Elements of Free Enterprise Quiz Study Guide
I can analyze the relationship between household, business, and government spending using a
circular flow model.
I can explain how prices send signals to buyers and sellers and provide them with incentive.
I can explain how the government protects people’s property rights and how this gives them an
incentive or not.
I can identify American documents which established property rights.
I can explain how the government fixes negative extertalities and encourages positive
externalities.
I can describe where the government spends our taxes on public services.
Vocab:
 Private goods
 Excludable Public goods
 Nonexcludable public goods
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

Free rider
Positive externality
Negative externality
Concepts:
 Four features of free enterprise
 Results of competition
 Examples of private goods, nonexcludable public goods, and excludable public goods
 Who produceds nonexcludable public goods, why, and how
 Who produces excludable public goods and why
 Circular flow diagram: relationship between businesses and households and government
 Examples of positive and negative externalities
 Government involvement with externaltities
 Civil Action: 1st, 2nd, and 3rd parties, externality in case, government involvement, and change in
Schlictman






Chapter 3: Elements of Free Enterprise Quiz Study Guide
I can analyze the relationship between household, business, and government spending using a
circular flow model.
I can explain how prices send signals to buyers and sellers and provide them with incentive.
I can explain how the government protects people’s property rights and how this gives them an
incentive or not.
I can identify American documents which established property rights.
I can explain how the government fixes negative extertalities and encourages positive
externalities.
I can describe where the government spends our taxes on public services.
Vocab:
 Private goods
 Excludable Public goods
 Nonexcludable public goods



Free rider
Positive externality
Negative externality
Concepts:
 Four features of free enterprise
 Results of competition
 Examples of private goods, nonexcludable public goods, and excludable public goods
 Who produceds nonexcludable public goods, why, and how
 Who produces excludable public goods and why
 Circular flow diagram: relationship between businesses and households and government
 Examples of positive and negative externalities
 Government involvement with externaltities
 Civil Action: 1st, 2nd, and 3rd parties, externality in case, government involvement, and change in Schlictman