Economics American Free Enterprise Capitalisms

Which of the following best describes a characteristic of Capitalism?

• Free Market

• Privately Owned Business

• For Profit Business

• All Choices are Correct

True or False: Communism supports class warfare in order to ensure all property is owned by each individual in a society.

• True

• False

Which of the following is the defining characteristic of Socialism?

• Private ownership of the means of production with an emphasis on democratic control

• Social ownership of land with authoritarian control

• Social ownership of the means of production, with an emphasis on democratic control

• All choices are correct

True or False: Capitalism is the least flexible economic system.

• True

• False

The biggest issue nations transitioning to capitalism face is which of the following?

• Economic Uncertainties

• Lack of Social Welfare Safety Nets

• Loss of Control by Government Officials

• All Choices Are Correct

Economic Freedom, Voluntary Exchange, Private Property Rights, Profit Motive, Competition are all characteristics of which of the following?

• Russian Communism

• American Free Enterprise Capitalism

• German Totalitarianism

• French Social Economics

Which of the following is NOT a characteristic of Economic Freedom?

• The right to choose your occupation

• The right of businesses to decide what to produce

• The right to manufacture only what government tells you

• The right to choose your employer

What is voluntary exchange?

• Buyers and sellers freely and willingly engaging in market transactions

• Buyers and sellers engaging in forced transactions

• Buyers and sellers not engaging in free markets

• None of the choices are correct

How is Private Property an "incentive" for people to participate in Free Enterprise Capitalism?

• It motivates them to accumulate resources

• It motivates them to improve what they already have

• It motivates them to lend their property

• All choices are correct

What is the best way to define Profit Motive?

• Money made after only resource costs

• Money made after only shipping costs are covered

• Money made after all expenses to sell something are covered

• Money made when breaking even