Benefits of Free Enterprise

The profit motive drives business owners to

• protect the private property rights of those who consume their goods.

• see that the principle of open opportunity applies to all Americans.

• make sure their firm is operating at its highest level of efficiency.

• develop incentives for their employees to work fewer hours each week.

An entrepreneur can BEST be characterized as someone who

• tries to persuade officials to pass favorable laws.

• takes risks in order to acquire profits.

• signals businesses what and how much to produce.

• seeks to engage in a voluntary exchange.

The due process clauses of the Constitution

• protect Americans' private property rights.

• ensure all Americans the opportunity to compete.

• eliminate barriers to women in the workplace.

• give Congress the right to set direct taxes on incomes.

Which of the following BEST illustrates the involvement of the U.S. government in the marketplace today?

• The government takes over an industry in order to control production.

• The government requires manufacturers to issue warnings that come with new microwave ovens.

• The government hires new workers to help deliver government services to the public.

• The government encourages formation of consumer and business interest groups.

What is the main economic benefit of public disclosure laws?

• They guarantee that businesses can make legally binding contracts.

• They protect employees from potential dangers in the workplace.

• They cut into the profits of highly regulated industries.

• They ensure that consumers can make informed buying decisions.