Question

Q2. Match each term with the correct definition by inserting the appropriate letter into the
second column.
Term Appropriate Letter that matches the term
private property
freedom of enterprise
mutually agreeable
freedom of choice
self-interest
competition
market
a. An institution that brings buyers and sellers together.
b. The right of private persons and firms to obtain, control, employ, dispose of, and bequeath
land, capital, and other property.
c. The presence in a market of independent buyers and sellers who compete with one another
and who are free to enter and exit the market as they each see fit.
d. The freedom of firms to obtain economic resources, decide what products to produce with
those resources, and sell those products in markets of their choice.
e. What each individual or firm believes is best for itself and seeks to obtain.
f. Economic transactions willingly undertaken by both the buyer and the seller because each
feels that the transaction will make him or her better off.
g. The freedom of resource owners to dispose of their resources as they think best; of workers
to enter any line of work for which they are qualified; and of consumers to spend their
incomes

Answer 1

a. An institution that brings buyers and sellers together. - MARKET
b. The right of private persons and firms to obtain, control, employ, dispose of, and bequeath
land, capital, and other property. - PRIVATE PROPERTY
c. The presence in a market of independent buyers and sellers who compete with one another
and who are free to enter and exit the market as they each see fit. - Competition
d. The freedom of firms to obtain economic resources, decide what products to produce with
those resources, and sell those products in markets of their choice. - Freedom of Enterprise
e. What each individual or firm believes is best for itself and seeks to obtain. - Self Interest
f. Economic transactions willingly undertaken by both the buyer and the seller because each
feels that the transaction will make him or her better off. - Mutually Agreeable
g. The freedom of resource owners to dispose of their resources as they think best; of workers
to enter any line of work for which they are qualified; and of consumers to spend their
incomes - Freedom of Choice