Intro to Business Chapter 2 Review

The United States has a command economy where the government provides for some wants, and the market provides things like cars.

• True

• False

In our economic system, individuals have the right to own property.

• True

• False

In a market economy, businesses compete with each other for sales and customers.

• True

• False

In a market economy, workers have the right to organize unions in order to improve working conditions.

• True

• False

In our economic system, individuals may prepare for and enter any occupation of their choice.

• True

• False

In the market economy, business have a goal of making a profit.

• True

• False

The price and supply of goods and services is set by the government.

• Command Economy

• Capitalism

• Socialism

This system is based on free exchange by buyers and sellers in the marketplace.

• Command Economy

• Capitalism

• Socialism

Most businesses may be owned by individuals, but the government owns and operates such basic industries as airlines, television stations, and banks.

• Command

• Capitalism

• Socialism

Profit and competition are emphasized in this economic system.

• Command Economy

• Capitalism

• Socialism