Topic 2

Another word used to describe a free enterprise system is:

• communism

• capitalism

• nationalism

• none of the above

Under a free enterprise system, businesses in the U.S. are allowed to do all of the following EXCEPT:

• decide what products to sell

• decide how to operate their business

• price their products

• they're allowed to do all of the above

In a free enterprise system, the government places ________________ restrictions on businesses and its citizens:

• minimum

• maximum

• normal

• abnormal

This nations government does NOT use a free enterprise system:

• Canada

• United States

• North Korea

• South Korea

True or False:

The U.S. government allows businesses to produce and sell whatever products they want as long as they are legal.

• True

• False

All of the following are characteristics of a free enterprise system EXCEPT:

• freedom to pursue an education

• freedom to seek employment

• freedom to scam others

• freedom to purchase property

A government which uses a free enterprise system of economics, allows its citizens to:

• Start their own business

• purchase goods wherever

• spend their money as they please

• all of the above

True or False:

Under a free enterprise system, people must work in a profession that is chosen for them by the government:

• True

• False

In a free enterprise system, the spending habits of _____ determine which products and services to offer:

• Consumers

• Government

• Professors

• Politicians

The governments of these two Asian nations are examples of governments who restrict the economic freedoms of their citizens:

• France & Egypt

• Japan & Alaska

• India & China

• China & North Korea