Chapter 1 Role of the Government

The study of how people and nations use their resources to satisfy needs and wants.

• Economics 
• Ecology
• Capitalism 
• Free Enterprise 

An economic system that emphasizes freedom of choice 

• Capitalism 
• Socialism 
• Communism 
• Free Market Enterprise 

An economic system in which buyers and sellers make free choices in the marketplace. 

• Free Market
• Free Enterprise 
• Capitalism 
• Laissez-faire

The opportunity to control one's own economic decisions. 

• Free Enterprise 
• Free Market
• Capitalism 
• Mixed Economy

The philosophy that government should keep its hands off the economy.   

• Laissez-faire 
• Communism 
• Command Economy 
• Socialism 

Economists describe the United States as having a ___________________ economy.

• Mixed Economy 
• Command Economy
• Democratic Economy 
• Broken Economy 

This economy combines elements of capitalism and socialism. 

• Mixed Economy
• Command Economy 
• Split Economy 
• Democratic Economy 

An economic system in which the government owns the basic means of production, distributes the products and wages, and provides social services such as health care and welfare.

• Communism 
• Socialism 
• Capitalism 
• Command Economy 

A socialist who is committed to democracy but wants government involvement in the distribution of wealth. 

• Democratic Socialist 
• Communist 
• Proletariat 
• Capitalist 

True or False 
North Korea is a communist Country.

• True
• False