Business EC-015

Every society must develop a system for deciding how it will use its resources so that it can

• prevent problems.

• control production.

• minimize risk.

• meet people’s needs.

Who answers the basic economic questions in a private enterprise economic system?

• Businesses and individuals

• Influential citizens

• Government agencies

• Entrepreneurs and producers

One of the results of freedom in the marketplace is that

• government decides how to use an individual’s private property.

• people can buy anything they can afford that can legally be sold.

• people and businesses can own things of value.

• businesses use resources efficiently.

Alex owns a guitar, several books, and a telescope. Alex’s possessions are examples of

• capital goods.

• equal distribution.

• private property.

• economic resources.

Which of the following is a benefit of the freedom to own private property:

• It encourages people to save and to invest.

• It helps to limit our economic choices.

• It allows people to do anything they want to do.

• It encourages businesses to be cooperative.

Which of the following statements best describes the way that the U.S. economic system functions:

• The government is the primary decision maker, and occasionally it becomes the regulator.

• Individuals and businesses are the primary decision makers, while the government is the regulator.

• Individuals and businesses are the primary decision makers, and there is no regulator.

• Individuals are the primary decision makers, while businesses are the regulators.

The basic role of the United States government is to

• increase production.

• maintain control of prices.

• limit business startups.

• protect U.S. citizens.

In a private enterprise economic system, consumers can choose from a variety of products as a result of

• inflation.

• competition.

• the collection of taxes.

• limited government control.

The economic basis for the private enterprise economic system is

• supply and demand.

• competition.

• the marketplace.

• the profit motive.

The private enterprise economic system is often described as a(n)

• controlled system.

• price-directed system.

• entrepreneur system.

• pure system.