Review for Final Business Essentials 2.04

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

• minimize risk

• meet people's needs

• prevent problems

• control production

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

• Government agencies

• influential citizens

• businesses and individuals

• entrepreneurs and producers

One of the results of freedom in the marketplace is that

• businesses use resources efficiently

• people and businesses can own things of value

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

• government decides how to use an individual's private property

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

• private property

• economic resources

• capital goods

• equal distribution

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

• It helps limit our economic choices

• It encourages businesses to be cooperative

• it encourages people to save and invest

• it allows people to do anything they want to do

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

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

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

• 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.

The basic role of the United States government is to

• protect U.S. citizens

• maintain control of prices.

• increase production

• limit business startup

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

• the collection of taxes

• limited government control

• inflation

• competition

The economic basis for the private enterprise economic system is

• competition

• the profit motive

• the market place

• supply and demand

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

• pure system

• controlled system

• entrepreneur system

• price-directed system