Free Enterprise

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 ____________________.

• decide what products to sell

• decide how to operate their business

• price their products

• all of the above

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

• minimum

• maximum

• normal

• abnormal

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

• freedom to purchase any product you want

• 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

Which of these characteristics is TRUE of the American free enterprise system?

• Producers are forced to sell a certain quantity of items

• Individuals can purchase goods and services that they want

• Only the government can own and sell property

• There is no profit motive for businesses

This is the social & political commitment & freedom to start their own businesses & compete

• free enterprise system
• free response system
• free travel system
• freedom of choice

The rivalry between sellers to get more customers by lowering costs & better goods/services

• voluntary exchange
• competition
• incentives
• legal equality

The government's job in a free enterprise economy is to

• tell people and business what to do

• control who buys what

• control who sells what

• make sure all businesses are run safely and fairly