ITB: 2-8 Private Enterprise System and the U.S. Economy

What are the three basic questions that all societies need to answer?

• What, How, and For Whom

• Who, When, and Where

• Why, Where, and How Much

• Which, When, and How Many

Which economic system is characterized by no privately-owned property and government control of production and distribution?

• Capitalism

• Socialism

• Communism

• Mixed Economy

Which countries are examples of socialist countries?

• China, North Korea, and Cuba

• Denmark, Canada, and Sweden

• Australia, Germany, and France

• United States, United Kingdom, and Japan

What is the economic system of the United States?

• Communism

• Socialism

• Capitalism

• Mixed Economy

What is the definition of profit?

• The financial gain earned when revenue exceeds expenses

• The total revenue generated by a business

• The expenses associated with achieving revenue

• The difference between supply and demand

What does the term 'motive' mean?

• A reason for doing something

• The total cost of production

• The amount of money earned from a business

• The process of setting prices in the market

Which economic system is characterized by private ownership of companies and the profit motive?

• Capitalism

• Socialism

• Communism

• Mixed Economy

What is a distinguishing characteristic of capitalism?

• Equal distribution of wealth

• Government control of production

• No privately-owned property

• Profit motive

What is a mixed economic system?

• An economic system with no government regulation

• An economic system with only private ownership

• An economic system that is a blend of capitalism and socialism

• An economic system where prices are set by supply and demand

What is one potential disadvantage of private enterprise?

• Excessive pursuit of profits

• Lack of competition

• Limited consumer choices

• Slow technological change